price strats Flashcards
(5 cards)
1
Q
price penetration
A
very low price when product comes out so lots of people try it - good way to establish a market share in a very competitive market
2
Q
loss leader
A
when price of product is set below the cost but the idea is that customers will buy other products that go with it to make a profit
3
Q
price skimming
A
high price to begin with, usually do this when they know there will be a high demand
4
Q
competitive pricing
A
similar prices to other firms - happens when there is lots of choice like petrol
firm makes very little profit and has to find other ways other than price to attract customers
5
Q
cost plus
A
used when not in comp - add money on to make a profit whilst still maintaining a demand
