Studied by 1 personDiscount pricing
________: when products have not sold in sufficient quantity or when a product reaches close to expiry date.
Seasonality
________: products offered in high season tend to be more expensive than those offered at off- peak times.
Surcharges
________ can be defined as hidden costs within the industry.
Market penetration
________: usually used in the introduction phase.
impression of goods
It gives customers the ________ being cheap and entices them to spend on other more profitable and linked items at the same time, thus benefiting the organisation.
Market skimming
________: usually used in the introduction phase.
Profitability
________: this means that ________- seeking organisations operating within the private sector will take a much different approach in determining price policy to use compared with those organisations financed through public sources, as they need to make revenue.
Competitors
________: if no substitute products are available, a higher price can be set.
Taxation
________ can be seen as the opposite of subsidy, this is done to change the behaviour of organisations.
loss leader
A(n) ________ is a product that is sold at little or no profit, or even at a loss.
Loss leader pricing
________: usually used in the decline stage.
Price
term used to describe how much a customer actually paste receive the product or service upon purchase
Market penetration
usually used in the introduction phase
Market skimming
usually used in the introduction phase
Discount pricing
when products have not sold in sufficient quantity or when a product reaches close to expiry date
Variable pricing
this pricing takes into account the variability of demand
High prices are charged during the peak season
when demand is high
Loss leader pricing
usually used in the decline stage
Special offers
a form of promotional pricing
The going rate/competitive pricing
where there is a high degree of similarity between products offered by different organisation, the price may be determined by the going rate
Prestige pricing
usually used in the introduction stage
Price bundling
also known as product-bundle pricing, this involves pricing a few items of related products into a single bundle
Fixed and variable costs
these referred to all the expenses a business place to buy or to produce its products or services
Profitability
this means that profit-seeking organisations operating within the private sector will take a much different approach in determining price policy to use compared with those organisations financed through public sources, as they need to make revenue
Subsidies, taxation and surcharges
a subsidy is essentially a simple idea or an incentive to work with, the benefit of this to the customer is a reduction in price
Competitors
if no substitute products are available, a higher price can be set
Customer expectation/likely number of customers
price and quality perceptions are closely linked
Seasonality
products offered in high season tend to be more expensive than those offered at off-peak times
Economic factors
the state of the global economy has an impact on the price being paid
Market penetration
Usually used in the introduction phase. When launching a new product into a very competitive market, low prices are used to entice customers to try the product. This is also known as trial pricing. The aim is to win a large customer base and generate revenue quickly.
Market skimming
Usually used in the introduction phase. It allows the provider to charge a higher price, attracting customers who are comfortable with spending alot. Competitors will then enter the market, forcing the price down and making the product more affordable for a wider range of customers.
Variable pricing
This pricing takes into account the variability of demand. Different prices maybe set for different seasons of the year. High prices are charged during the peak season: when demand is high. Low prices are charged during low season, when demand is low.
Loss leader pricing
Usually used in the decline stage. A loss leader is a product that is sold at little or no profit, or even at a loss. It gives customers the impression of goods being cheap and entices them to spend on other more profitable and linked items at the same time.
Special offers
A form of promotional pricing. This policy is sometimes used as a form of competitor based pricing, to pull customers away from a rival attraction.
The going rate/competitive pricing
Where there is a high degree of similarity between products offered by different organisation, the price may be determined by the going rate.
Prestige pricing
Usually used in the introduction stage. Where products have an exclusive appeal or are of an exceptional quality, high prices are often set based on the assumption that people will associate high prices with high quality.
Price bundling
Also known as product-bundle pricing, this involves pricing a few items of related products into a single bundle.
Factors that determine pricing policies
Fixed and variable costs, Profitability, Subsidies taxation and surcharges, Competitors, Customer expectation, Seasonality, Economic factors
Note
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