Studied by 12 people
Cost-based pricing
Deciding on the price primarily based on the costs of production
Cost-plus pricing
Calculating the average cost of production and adding a mark-up for profit
Market-oriented pricing
Deciding on the price based on an analysis of the conditions in the market
Penetration pricing
Used by businesses trying to gain a foothold in the market. The idea is to lower the price to encourage customers to purchase in larger quantities.
Market skimming
Charging a high price for a new product for a limited time period to gain as much profit as possible while the product is unique in the market.
Loss leader
Products prices at low levels to attract customers, the company makes a loss on the product.
Price discrimination
Offering the same product at different prices when consumers can be kept separated, based on time or market.
Psychological pricing
Trying to influence the customer's decision, for example by charging lower than a round figure ($9.99).
Promotion pricing
A reduction in the standard price for a particular group of customers
Competition-based pricing
When the price of the competitor is the major influence
Predatory pricing
Eliminate opposition by cutting prices for a limited amount of time, enough for the rivals to go out of business
Note
Flashcard