Theme One

1. A percentage mark up is added to the cost of producing a product to calculate the selling price. (4, 4)
5. Function, aesthetic and cost (6, 3)
6. The amount of money that the customer has to pay to receive the good or service. (5)

2. Setting prices to sound cheaper than it is - £9.99 instead of £10 (13, 7)
3. USP, Advertising, Sponsorship, Use of social media. (4, 2, 5, 1, 5)
4. Setting prices low in order to break into a new market. (5, 11)
6. Large firms will set their prices low in order to force smaller businesses out of the market. (9, 7)
7. Prices are based on the prices charged by competitors. (11, 7)
8. Activities designed to communicate with the market thereby increasing visibility and sales of a product. (9)
10. Setting a high price initially for a new product in order to recoup costs and gradually decreased over time. (5, 8)

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