Pricing Strategies 0.0 / 5 ? BusinessPricing StrategiesA2/A-levelEdexcel Created by: ms200206Created 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
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