Chapter 2 - Pricing tactics Flashcards
1
Q
Cost plus
A
Mark-up pricing
2
Q
Penetration pricing
A
Low price to gain market
3
Q
Price discrimination
A
different prices for same product
4
Q
Going rate
A
set to match competitor
5
Q
Price skimming
A
high price first, dropped later once high paying customers been skimmed
6
Q
Loss leaders
A
one product sold at a loss with expectation that customer will buy more profitable product
7
Q
Captive product pricing
A
Customers must buy 2 products. 1st is cheap to attract customers, 2nd is expensive.
