Marketing Mix - Price Flashcards

1
Q

What is the price of a product affected by?

A

7PS

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2
Q

What is cost-plus pricing?

A

When price is set to cover the cost of making the product or buying from a wholesaler and to make a profit

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3
Q

What is price skimming?

A

When new products are sold at high prices when they first reach the market. Consumers will pay more and then prices are dropped.

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4
Q

What is an example of a company that uses price skimming?

A

Apple

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5
Q

What is penetration pricing?

A

Launching a product at low price in order to attract customers and gain market share.

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6
Q

What does penetration pricing work best for?

A

Companies that benefit from lower costs

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7
Q

What is a problem with penetration pricing?

A

Customers could expect price to stay low

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8
Q

What is predatory pricing?

A

When a business deliberately lowers prices to force another business out of market

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9
Q

What is competitive pricing?

A

When companies monitor their competitors prices to make sure prices are set at an equal or lower level.

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10
Q

What is psychological pricing?

A

Bases the price on customers expectations

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11
Q

What is loss leader pricing?

A

Products sold at or below cost price

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12
Q

What is price discrimination?

A

When a company sells its product at different prices to different groups of consumers

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13
Q

What is dynamic pricing?

A

To increase revenue by changing prices depending on competitor prices and demand

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14
Q

What influences pricing in industrial marketing?

A

Depends on the competitiveness of the market

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