Pricing Strategies 0.0 / 5 ? Business StudiesMarketing mixFinancial PlanningASEdexcel Created by: mariawindsor23Created on: 03-04-16 12:03 Cost Plus Pricing A cost based method of setting prices - business works out a % mark up to add to the total costs to chose price 1 of 6 Price Skimming Pricing strategy in which market sets higher prices at first but this will decrease over time - as product gets older 2 of 6 Penetration Pricing Starting off low price until market share grows then increase prices oncethey have a loyal customer base 3 of 6 Predatory Pricing Pricing goods/services at a low price so competitors cannot compete and have to leave the market - prices may then increase again 4 of 6 Competitive Pricing Setting a price based on what the competition is charging 5 of 6 Psychological Pricing setting price on what the customers are willing to pay - e.g. if higher quality customers more willing to pay more 6 of 6
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