Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar

level: Price

Questions and Answers List

level questions: Price

QuestionAnswer
what factors affect the setting of a products price?production cost how much profit the business wishes to make what competitors are charging whether the product has a strong brand whether the product is perceived to be of a high quality the stage in the products life cycle
what are the 7 pricing strategies a business may use when pricing a product?low price high (premium) price competitive cost + profit psychological destroyer price skimming
describe the low price pricing strategysetting a price that is lower than competitors
describe the premium price pricing strategysetting a price higher than most other similar products in order to create the image of quality
describe the competitive pricing strategysetting prices in line with your competitor
describe the cost plus profit pricing strategytotalling up the cost of product production and adding on a fixed percentage to reach the selling price (cost + profit = selling price)
describe the psychological pricing strategycharging a price which makes the customer think the product/service is cheaper than it actually is
describe the destroyer pricing strategysetting prices artificially low for a short period of time in order to gain market share from other competitors competitors may be forced to lower their prices too or move out of the market (Illegal pricing strategy)
describe price skimming pricing strategysetting prices very high for a new/innovative product onto the market prices will be lowered over a period of time as the product becomes less popular/out of date