Learn Unit 1, Marketing Mix Price 0.0 / 5 ? Business StudiesMarketing mixGCSEAQA Created by: Amelia Cantwell-HydeCreated on: 02-12-15 19:15 1. Describe cost plus pricing This is where a business works out the cost to make the product and adds on some money for profit. 1 of 8 2. Describe competitive pricing This is where a firm tries to match the price being charged by competitors. Supermarkets do this. 2 of 8 3. Describe price skimming This is where a firm charges a high price to start with. Technology firms such as Apple do this where demand is high. 3 of 8 4. Describe price penetration This is where a firm charges a low price to gain market share. They they increase the price. Sky did this. 4 of 8 5. Describe loss leaders This is where a firm loses money on a product. But gains customers into the store to buy other products. Supermarkets use this strategy. 5 of 8 6. List 4 things which may influence the price 1. What the customers are charging 2. How much it costs to make the product 3. Pricing strategy used 4. Stage in the life cycle. 6 of 8 7. Explain what happens to sales as a price increases Sales go down. 7 of 8 8. Explain what happens to sales as the price is lowered Sales go up. 8 of 8
GCSE AQA business studies Unit 1 starting up a business 5.0 / 5 based on 1 rating Teacher recommended
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