Intro To Pricing STRAT

Question 1

Amount of money that you charged for your products.

Answer 1

Pricing

Question 2

One of the first thing that can push a customer towards, or away from, buying you product

Answer 2

Pricing

Question 3

One of the 4ps of marketing, refers to how much is charged for a product or service

Answer 3

Price

Question 4

Process and methodology used to determined prices for products and services

Answer 4

Pricing Strategy

Question 5

Processess and methodologies businessess use to set prices for their prodcuts and services.

Answer 5

Pricing strategies

Question 6

7 types of pricing strategies

Answer 6

• Value based pricing
• Competitive Pricing
• price skimming
• cost plus pricing
• penetration pricing
• economy pricing
• dynamic pricing

Question 7

Portrays value

Answer 7

Winning pricing strategy

Question 8

Convinces customers to buy

Answer 8

Winning pricing strategy

Question 9

The one that convinces people to purchase your offering over the similar products that you competitors have to offer

Answer 9

Ideal Price

Question 10

Gives your customers confidence in your product

Answer 10

Winning pricing strategy

Question 11

Doesnt accurately portray the value of your product

Answer 11

Weak pricing strategy

Question 12

Makes customers feel uncertain about buying

Answer 12

Weak pricing strategy

Question 13

Targets the wrong customer

Answer 13

Weak pricing strategy

Question 14

Steps in choosing a pricing strategy

Answer 14

• examine the different types
• review pricing strategy examples
• understand how they differ

Question 15

Setting new product prices high and subsequently lowering the price as competitors enter the market

Answer 15

Skimming pricing (pricing skimming, skim pricing)

Question 16

Pricing products based on the price of competitive products, rather than cost or target profit; usually cheaper than competitors

Answer 16

Competitive pricing strategy

Question 17

Pricing that varies based on marketing and customer demand

Answer 17

Dynamic pricing strategy

Question 18

Pricing a product based on how much the customer believes its worth

Answer 18

Value-based pricing

Question 19

Entering a market at a low price and increasing prices over time

Answer 19

Penetration pricing strategy

Question 20

Pricing a product low because of low costs of production, marketing, and advertising, and relying on hgih sales volume to generate profit

Answer 20

Economy pricing strategy

Question 21

Pricing a produt deliberately high to encourage favorable perceptions of the brand based on the price

Answer 21

Premium pricing strategy

Question 22

Adding a fixed percentage on top of the cost of producing a product, regardless of consumer demand or competitors pricing

Answer 22

Cost plus pricing strategy

Question 23

Offering a product for free alongside paid versions with more features

Answer 23

Freemium pricing strategy

Question 24

Pricing each finite service or project on a case by case basis according to the value of the outcome instead of on thetime spent to complete it

Answer 24

Project based pricing strategy

Question 25

3 Major most common pricing strategies

Answer 25

Cost based pricing strategies Value based pricing strategy Competition based pricing strategy

Question 26

Uses production cost as its basis for pricing and, to this base cost, a profit level must be added in order to come up with the product price

Answer 26

Cost based pricing

Question 27

Cost based pricing companies use their costs to find a * and *

Answer 27

Price floor and price ceiling

Question 28

Price between the price floor and price ceiling

Answer 28

Price range

Question 29

Pros: Calculations to determine price are simple During price setting unknowns are taken into account Pricing ensures total profits for the business

Answer 29

Cost based pricing

Question 30

Cons: Ignores how customer demand affects price It doesnt take into account actions by competition Price setting cannot be solely based on costs

Answer 30

Cost based pricing

Question 31

Also known as customer based pricing

Answer 31

Value based pricing

Question 32

Pricing concept which is defined as the setting of a products price based on the benefits it provides to consumers.

Answer 32

Value based pricing

Question 33

Pros: The price set supports product image The value added helps increase product sales Differentiation attracts new customers

Answer 33

Value based pricing

Question 34

Cons: Calculations may ignore product costs It might forget about existing competitors It requires great selling techniques

Answer 34

Value based pricing

Question 35

Also known as competitive pricing, consists of setting the price of a product based on what ths competition is charging.

Answer 35

Competition based pricing

Question 36

Pros: It keeps an eye on existing and emerging rivals in the industry and provides smart data to make more effective oricing decisions - setting the right price according to market state helps gain competitiveness

Answer 36

Competition based pricing

Question 37

Cons: - you risk losing profits if you do not take into account information on your purchase price and margins. You need to check on your price elasticity - it needs on effective price monitoring system. Automation is key in this respect to avoid manual tracking

Answer 37

Competition based pricing