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Flashcards in Pricing Deck (12):

You are charging artificially low price in order to gain a quick market share. (Communications, cable or satellite ...)

Penetration princing


In supermarket, there's very often a no frills (pas de fioritures) or economy range (ex budget airlines)

Economy pricing


Similar to premium pricing. Once the product is launched, price is kept very high while it is quite rare

Skimming pricing


Price is used as a trigger (element declancheur)
Prix magique

Psychological price


A number of product are price differently because there is an entire range. Each product might be priced in order to get market share. Even if some products are more expensive to make the company sure the profit is made on the range: they will make a less on some items and make a profit on others

Product line pricing


An item has a single price and then you need to buy add ons and these are optional products, which are priced very expensively

Optional products


You have no choice but to pay

Captive product pricing


Buying products together (ex games or dvd)

Product bundle pricing


There are many examples : 50% off, discounts, buy 1 get 1 free

Promotional pricing


Prices changes in order to fit with a particular market place

Geographical pricing


It is very similar to economy approach except you often tend to get it in times of recession

Value pricing


You have a competitive advantages, you can charge what you like for the product. Large brands (ex: airlines)

Premium pricing