Price Flashcards
(4 cards)
1
Q
Influences on price
A
Costs - what profit margin is the business achieving
The PED - the potential for business to change the price
Competition - the level of competitors price
Product life cycle - the stage that the product is in
Branding - the perception of the brand
All other elements of the marketing mix
2
Q
Dynamic pricing
A
Price fluctuates with levels of demand
Example - hotel rooms
3
Q
Price skimming
A
Initial price is high
Profit in market is skimmed
People who want to own something new
Example PS5
4
Q
Penetration pricing
A
Low initial price
New product entering a market
Undercutting competitors
Price will increase as business grows
