Pricing Strategies

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Name 4 types of cost based pricing
Breakeven, Contribution, Cost Plus, Loss leading
1 of 10
Describe what loss leading pricing is
Enticing customers to a shop with low prices so that they buy other things at the same time
2 of 10
What is marginal costing?
Where the variable cost are covered by the price and the rest contributes to fixed
3 of 10
Name 5 types of consumer based pricing
Psycological, promotional, complementary, convenience, discrimination
4 of 10
Name 3 ways prices can be 'discriminated'
Age, Time and Place
5 of 10
Describe what complementary pricing is
Where a price of a product is low to attract people to buy the complementary product, this will cover the loss made
6 of 10
Name 5 types of competion based pricing
Premium, Competitive, Destroyer/Predatory, Penetration, Skimming
7 of 10
Describe predatory pricing
Lowering prices of products when there's a new competitor to force them out of the market
8 of 10
Describe penetration pricing
Lowering the price to attract market share then increasing prices
9 of 10
Describe skimming
Raising prices for quick profit then decreasing them
10 of 10

Other cards in this set

Card 2

Front

Describe what loss leading pricing is

Back

Enticing customers to a shop with low prices so that they buy other things at the same time

Card 3

Front

What is marginal costing?

Back

Preview of the front of card 3

Card 4

Front

Name 5 types of consumer based pricing

Back

Preview of the front of card 4

Card 5

Front

Name 3 ways prices can be 'discriminated'

Back

Preview of the front of card 5
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