pricing strategies Flashcards
1
Q
What is cost plus pricing?
A
This is a percentage markup of the cost to produce the product.
2
Q
What is price skimming?
A
Setting a high price for a new product
3
Q
Define promotional pricing
A
Setting a low initial price to attract business then bringing the price up to the normal price
4
Q
Define predatory pricing
A
Done to drive competitors out of the market
5
Q
What is differential pricing?
A
Charging a different price for each segment of the market. For example, having a price for children and a price for adults.
6
Q
What is branding?
A
Using the brand name to charge a higher price for a premium brand
7
Q
Define dumping
A
Pricing below cost in export markets
