Pricing strategies
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10 Terms
Cost-plus pricing
How much it costs to produce, add a mark up
Market skimming
Selling for a high price initially, gradually lower price after growth
Penetration pricing
To gain market share, initial price is low
Complementary product pricing
complementary products, charge low for A and sell B for more, eg printer and ink
Product line pricing
One product, eg milk, expensive full fat milk, semi skimmed cheaper
Volume discounting
Discounts on bulk purchases
Price discrimination
Different prices different customers, eg movie tickets child ticket adult ticket
Relevant cost pricing
Ensure selling price covers relevant cost (decision costs related to variable costs) and profits
Price elasticity of demand equation
%change in quantity demanded/ %change in proce
Note 
Flashcards (44)