Pricing Strategies . 4.5 / 5 based on 6 ratings ? Business StudiesProfitGCSE Created by: izzyCreated on: 29-06-12 22:07 Pentration Pricing This is when a firm changes a low price in order to penetrate the market, usually with a new product. E.g. The first edition of a magazine may be cheaper to get people to read on and buy firther issues. 1 of 7 Skimming / Creaming When a firm charges a very high price, usually on a new product, because of novalty value or because there is no competition. E.g. When a new computer game comes out avid fans will want it even when it's more expensive. 2 of 7 Cost-Plus Pricing A firm adds up the cost of what product costs to make, then adds a certain percent on to the price. Psychological Pricing £9.99 is used instead of £10 to make products seem cheaper. 3 of 7 Promotional Pricing A special price is charged to attract new customers or an old product or to sell off old products - like in a sale. 4 of 7 Differential Pricing This is when a firm charges different prices for the same products to different customers or at different times. E.g. Electricity is cheaper at night. 5 of 7 Loss Leaders A product sold at a loss making price in order to encourage customers to buy other products from the business. 6 of 7 Capture Pricing A firm charges a low price to attract you to buy something but the refills or extras are much more expensive. 7 of 7
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