Business AQA - Pricing Strategies

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Cost plus pricing

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5 Terms

1

Cost plus pricing

Setting a price by adding a fixed amount or percentage to the cost

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2

Penetration pricing

Setting a relatively low initial entry price to attract customers

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3

Loss Leader

A product priced below cost-price in order to attract consumers into a shop or online store

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4

Price skimming

Setting a high price at product launch as demand is high and decrease price as the market has been ‘skimmed‘.

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5

Competitive pricing

Set a price in line with the prices charged by direct competitors

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