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Managment of Marketing > Price > Flashcards

Flashcards in Price Deck (7)
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1
Q

what is effective about a decrease in price

A

makes the product more affordable and helps increase sale volume

2
Q

what is effective about an increase in price

A

it will promote an exclusive image and possibly increase profits

3
Q

what consequences can there be if the prices are chosen incorrectly

A
  • loss of customers as the price is too high

- loss of revenues fewer customers means less sales

4
Q

what is a price strategy

A

it is your price compared to competitors set over long term

5
Q

what is a price tactic

A

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

6
Q

what are long term pricing strategies

A
  • 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
Q

what are some short term pricing tactics

A
  • 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