4231298
Description
Mind Map by Hannah Ward, updated more than 1 year ago
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Created by Hannah Ward
over 10 years ago
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Pricing Decisions
- Penetration Pricing
- Definition: Stategy in which low prices are set
to break into a market or to achieve a sudden
increase in market share.
- Definition: Stategy in which low prices are set
to break into a market or to achieve a sudden
increase in market share.
- Price Skimming
- Definition: Strategy in which a high price
is set to bring in a higher profit margin
- Definition: Strategy in which a high price
is set to bring in a higher profit margin
- Price Taking
- Definition: When a large
company sets a market price
that smaller firms tend to
follow.
- Definition: When a large
company sets a market price
that smaller firms tend to
follow.
- Predator Pricing
- Definition: When a
firm sets extremely
low prices in order to
drive out other firms
- Definition: When a
firm sets extremely
low prices in order to
drive out other firms
- Loss Leaders
- Definition: When a firm sets
a low price for certain
products in order to
encourage consumers to
purchase fully priced
products.
- Definition: When a firm sets
a low price for certain
products in order to
encourage consumers to
purchase fully priced
products.
- Psychological Pricing
- Definition: Intended to give the
impression of value. (E.g £4.99
instead of £5.00)
- Definition: Intended to give the
impression of value. (E.g £4.99
instead of £5.00)
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