Price (HSC SSCE Business Studies): Flashcards
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Price definition
Price definition
Monetary value customer willing to pay for product/service
Product differentiation purpose
Product differentiation purpose
Making products distinct to gain pricing control
Cost-based pricing formula
Cost-based pricing formula
Cost + (Cost × Mark-up %) = Price
Market-based pricing basis
Market-based pricing basis
Supply & demand interaction
Price leader
Price leader
Major business whose pricing decisions influence the industry
Price skimming strategy
Price skimming strategy
Charging highest price during product introduction stage
Price penetration strategy
Price penetration strategy
Charging lowest price to rapidly gain large market share
Loss leader purpose
Loss leader purpose
Product sold at/below cost to attract customers & boost traffic
Prestige/premium pricing
Prestige/premium pricing
High prices to signal superior quality & exclusivity
Price-quality relationship
Price-quality relationship
Higher prices signal superior quality; lower prices inferior