Priced very low to drive competitors out the market. Boosts sales, blocks competition, plan might not work, large volumes need to be sold, preparation needed
Predator Pricing
2 of 6
Price determined by adding specific amount to the products unit cost. Easy to calculate, flexible, costs increase = higher price, ignores competitors pricing
Cost-plus pricing
3 of 6
High initial price, lower overtime (Iphone). High profit, difficult to maintain stock, attracts competitors.
Price Skimming
4 of 6
Price is slightly lower than round numbers e.g 99p. Increase sales, uses lot’s of 1ps
Psychological Pricing
5 of 6
Low initial entry price, Fast sales, catches competition off guard, creates low price expectation, retaliation from competitors
Penetration Pricing
6 of 6
Other cards in this set
Card 2
Front
Priced very low to drive competitors out the market. Boosts sales, blocks competition, plan might not work, large volumes need to be sold, preparation needed
Back
Predator Pricing
Card 3
Front
Price determined by adding specific amount to the products unit cost. Easy to calculate, flexible, costs increase = higher price, ignores competitors pricing
Back
Card 4
Front
High initial price, lower overtime (Iphone). High profit, difficult to maintain stock, attracts competitors.
Back
Card 5
Front
Price is slightly lower than round numbers e.g 99p. Increase sales, uses lot’s of 1ps
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