Pricing Decisions

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What is price?
Price is the amount of money the customer has to pay for a good or service
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What are the 3 pricing decisions?
Penetration pricing, Price Skimming, Dynamic pricing
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What is Penetration pricing?
It involves setting a low initial price for a new product in order to gain a foothold
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What is price skimming?
Involves setting a high initial price for a new product in order to recoup costs, once the initial market has been 'skimmed off' then the company will lower the price
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What is dynamic pricing?
Dynamic pricing allows prices to change frequently and quickly in response to changes in demand. Made possible by using technology that tracks demand and levels of interest.
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Which of those pricing decisions is most suited for mass market?
Penetration Pricing
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Card 2

Front

What are the 3 pricing decisions?

Back

Penetration pricing, Price Skimming, Dynamic pricing

Card 3

Front

What is Penetration pricing?

Back

Preview of the front of card 3

Card 4

Front

What is price skimming?

Back

Preview of the front of card 4

Card 5

Front

What is dynamic pricing?

Back

Preview of the front of card 5
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