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10 cards from this deck
Long-term approaches to setting prices
Starts high at launch, gradually lowers over time
Starts low to gain share, then increases
Established brands with strong brand image & market power
No influence; follows the going/market rate
Strategies: long-term; Tactics: short-term
Prices below cost to attract customers into store/site
How sensitive demand is to price changes
Revenue falls (demand drops significantly)
% change in quantity demanded ÷ % change in price
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