Where the price is set high, usually at launch to maximise profit, to see how responsive demand is.
1 of 8
What is penetration pricing?
Where price is set low to get more loyal customers and to gain market share.
2 of 8
What is competitive pricing?
Price matching to the nearest competitor.
3 of 8
What is cost plus pricing?
Percentage mark up is added to unit cost of producing an item.
4 of 8
What is predatory pricing?
Pricing of goods and services at such low prices that other firms cannot compete and are forced to leave the market.
5 of 8
What is psychological pricing?
Pricing an item to make it appear better value than it is.
6 of 8
What is dynamic pricing?
This is pricing at a perceived level that consumers are prepared to pay.
7 of 8
Factors affecting pricing decisions
Brand and reputation, costs, level of competition, quality, USPs, where it is in the product life cycle, disposable income, PED, online Vs in stores, substitute goods.
8 of 8
Other cards in this set
Card 2
Front
What is penetration pricing?
Back
Where price is set low to get more loyal customers and to gain market share.
Comments
No comments have yet been made