Price Flashcards
(6 cards)
1
Q
What is cost-plus pricing?
A
Adding a mark-up to the cost of making the product.
2
Q
What is penetration pricing?
A
Setting a low price to enter the market and attract customers quickly.
3
Q
What is competition-based pricing?
A
Setting prices based on competitors’ prices.
4
Q
What is price skimming?
A
Charging a high price initially for a new or unique product, then lowering it.
5
Q
What is promotional pricing?
A
Offering discounts or deals to boost short-term sales.
6
Q
Why do businesses use different pricing strategies?
A
To attract customers, compete, maximize profit, or enter new markets.
