Pricing Strategies

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  • Created by: ms200206
  • Created on: 08-11-20 14:13
Which strategy involves setting a high initial prices for a product to attract 'early adopters'?
Price skimming
1 of 10
Which strategy involves adding a percentage mark-up to unit costs?
Cost-plus pricing
2 of 10
What is a drawback of using cost-plus pricing?
It ignores market conditions, such as the price charged by competitors
This can result in low sales
3 of 10
What is psychological pricing?
When customers are tricked into thinking the product is cheaper than it actually is.
4 of 10
Identify two ways of competitively pricing products.
- Charging the same price as competitors
- Setting the price and letting others follow (price leadership)
5 of 10
Which strategy involves charging a low price for a short period of time to get a foothold in the market?
Penetration pricing
6 of 10
What type of consumers are likely to be attracted by penetration pricing?
Low income consumers
7 of 10
What is the aim of predatory pricing?
To eliminate competitors from the market.
8 of 10
Identify 3 factors determining choice of pricing strategy.
Choose 3 from:
Number of USP's
Price elasticity
Level of competition
Strength of brand
Stage in product life cycle
Costs and need for profit
9 of 10
finish the sentence: 'When first launched onto the market a firm may choose..'

HINT- there are two pricing strategies
Price skimming or penetration pricing
10 of 10

Other cards in this set

Card 2

Front

Which strategy involves adding a percentage mark-up to unit costs?

Back

Cost-plus pricing

Card 3

Front

What is a drawback of using cost-plus pricing?

Back

Preview of the front of card 3

Card 4

Front

What is psychological pricing?

Back

Preview of the front of card 4

Card 5

Front

Identify two ways of competitively pricing products.

Back

Preview of the front of card 5
View more cards

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