Marketing Mix - Pricing Flashcards
1
Q
What is price?
A
money charged
2
Q
What does price go towards?
A
profit, sales, loyalty
3
Q
What are price takers?
A
no option but to charge market price
RRP
4
Q
What are price makers?
A
Set their own price
5
Q
What are Price leaders?
A
Market leaders whose price changes are followed e.g., apple
6
Q
What are Price followers?
A
Businesses who follow the change
Samsung
7
Q
What is cost plus pricing?
A
Mark up
Doesn’t factor elasticity and competition
8
Q
What is dynamic pricing?
A
flexible prices
uber
9
Q
what is price skimming?
A
setting prices high to maximise profit
loyalty with early adopters
10
Q
what is penetration pricing?
A
setting prices low, building loyalty then increasing
