Price

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  • Created by: hed08joyk
  • Created on: 06-02-14 10:28
what determines price?
price elasticity, demand, product quality, pricing strategy
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Pricing strategies
cost-plus, contribution, discrimination, promotional, pyschological, skimming, penetration, loss leading, predatory
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Cost plus pricing
cost plus pricing ensures a profit is made on the profit, ADDING A CERTAIN AMOUNT TO THE COST OF A PRODUCT TO DETERMINE THE PRICE
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contribution pricing
setting a price to cover at least the direct costs
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price discrimination
charging different prices to different customers for the same product
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promotional pricing
setting a price to satisfy a particular promotional activity (where a product is sold for a short period at a very low price to attract consumers)
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pyschological pricing
setting a price that suggest to consumers that the product is mucher cheaper than it actually is £9.99 instead of £10
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price skimming
setting a high price for a new product (used when products are first introduced into the market)
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penetration pricing
setting a low price for a new product (when products are first introduced, opposite to skimming because of the low price)
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predatory pricing
setting low prices to force out competition of the market
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Other cards in this set

Card 2

Front

Pricing strategies

Back

cost-plus, contribution, discrimination, promotional, pyschological, skimming, penetration, loss leading, predatory

Card 3

Front

Cost plus pricing

Back

Preview of the front of card 3

Card 4

Front

contribution pricing

Back

Preview of the front of card 4

Card 5

Front

price discrimination

Back

Preview of the front of card 5
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