pricing strategies

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differential pricing
where a business charges different groups of consumers different prices for the same product
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skimming
a method of pricing where the business has a higher price than competitors because it is a better product for which consumers are willing to pay a higher price
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cost-plus pricing
a method of pricing where the business looks at the price it paid for a product and then adds the profit to arrive at the price to be charged
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penetration pricing
where a business lowers the price of products or services to gain customers from other businesses
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competitor pricing
a method of pricing where there are a lot of other businesses selling the same or similar products
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promotional pricing
prices are reduced for a short period of time, often to sell off old stock
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physcological pricing
where prices are £9.99 rather than £10 to make a product seem much less expensive so it attracts extra sales
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Other cards in this set

Card 2

Front

a method of pricing where the business has a higher price than competitors because it is a better product for which consumers are willing to pay a higher price

Back

skimming

Card 3

Front

a method of pricing where the business looks at the price it paid for a product and then adds the profit to arrive at the price to be charged

Back

Preview of the back of card 3

Card 4

Front

where a business lowers the price of products or services to gain customers from other businesses

Back

Preview of the back of card 4

Card 5

Front

a method of pricing where there are a lot of other businesses selling the same or similar products

Back

Preview of the back of card 5
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