Placing higher prices on products that are unique in some way. High Price= High Quality. E.g. Iphones
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Penetration Pricing
The price is set deliberately low in order to increase market share, and after this the price is increased. E.g. utilities
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Economy Pricing
The cost of manufacturing and marketing are kept at a minimum. E.g. own-brand goods from supermarkets.
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Psychological Pricing
Used when the market want the consumer to respond on an emotional basis, rather than a rational one. E.g. '£3.99' instead of '£4.00'
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Product Line Pricing
Where there is a range of product or services, the pricing differs for each product. E.g. small, medium, large.
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Optional Product Pricing
Increasing the amount a customer spends once they start to buy, adding optional 'extras'. E.g. mobile phones-adding chargers, earphones, cases etc.
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Captive Product Pricing
Companies will charge a premium price where the customers/consumers is captuered/where products have complements, and low prices for accessories. E.g. Games consoles have a high price, controllers/games are lower but necessary
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Product Bundle Pricing
When sellers combine several products in one package.
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Price Skimming
Selling a product at a high price, sacrificing high sales to gain a high profit. E.g. electronics when first introduced.
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Other cards in this set
Card 2
Front
The price is set deliberately low in order to increase market share, and after this the price is increased. E.g. utilities
Back
Penetration Pricing
Card 3
Front
The cost of manufacturing and marketing are kept at a minimum. E.g. own-brand goods from supermarkets.
Back
Card 4
Front
Used when the market want the consumer to respond on an emotional basis, rather than a rational one. E.g. '£3.99' instead of '£4.00'
Back
Card 5
Front
Where there is a range of product or services, the pricing differs for each product. E.g. small, medium, large.
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