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Flashcards in Price Deck (7)
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what is effective about a decrease in price

makes the product more affordable and helps increase sale volume


what is effective about an increase in price

it will promote an exclusive image and possibly increase profits


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


what is a price strategy

it is your price compared to competitors set over long term


what is a price tactic

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


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)


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