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Managment of Marketing > Price > Flashcards

Flashcards in Price Deck (7)
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1

what is effective about a decrease in price

makes the product more affordable and helps increase sale volume

2

what is effective about an increase in price

it will promote an exclusive image and possibly increase profits

3

what consequences can there be if the prices are chosen incorrectly

-loss of customers as the price is too high
-loss of revenues fewer customers means less sales

4

what is a price strategy

it is your price compared to competitors set over long term

5

what is a price tactic

it is a change in price in the short term, to influence demand

6

what are long term pricing strategies

-low price is used in competition and sets price below rivals
-high price is used in competition and sets price above rival
-phsychological price strategy used as long term (£99 not £100)

7

what are some short term pricing tactics

-skimming is a high price at launch then lowers
-penetration is low at launch then increase
-loss leader is very low price or deals to encourage retailers