Ch 39 - Key term 0.0 / 5 ? Business Studies-IGCSENone Created by: a f.vCreated on: 12-12-14 14:24 Competition-based pricing Pricing strategies based on the prices charged by rivals 1 of 11 Cost plus or cost-based pricing Adding a percentage (the mark-up) to the costs of producing a product to get the price 2 of 11 Destroyer or predatory prices Setting a low price until rivals have gone out of business 3 of 11 Loss leader A product sold below cost to draw in customers 4 of 11 Market orientated pricing Pricing strategies based upon the conditions in the market 5 of 11 Mark-up The percentage added the costs which makes a profit for a business when setting the price 6 of 11 Penetration pricing Setting a low price to start with in order to get established in the market. Price may be raised once established 7 of 11 Price elasticity of demand Measures the responsiveness of demand to a change in price 8 of 11 Price elastic demand Where a price change will result in a significant change in demand 9 of 11 Price inelastic demand Where a price change will result in a much smaller change in demand 10 of 11 Skimming or creaming Setting a high price initially and then lowering it later 11 of 11
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