Price (AQA GCSE Business): Quizzes
📚Quizzes
Practise the questions
13 questions from this quiz
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Practise the questions
13 questions from this quiz
What are the 4Ps that make up the marketing mix?
What are the 4Ps that make up the marketing mix?
Product, Price, Place, Promotion
What is cost-plus pricing?
What is cost-plus pricing?
Adding a set amount/% to production cost
A shop buys cards for 60p and applies 100% mark-up. What is the selling price?
A shop buys cards for 60p and applies 100% mark-up. What is the selling price?
£1.20
What is the main benefit of cost-plus pricing?
What is the main benefit of cost-plus pricing?
Simplicity & guaranteed profit per sale
What is penetration pricing?
What is penetration pricing?
Low initial price to attract customers
When is penetration pricing particularly effective?
When is penetration pricing particularly effective?
Markets where similar items already exist
What is price skimming?
What is price skimming?
High initial price before competitors
What is the main advantage of price skimming?
What is the main advantage of price skimming?
Recover R&D costs quickly & high profits
What are loss leaders?
What are loss leaders?
Products priced below cost to attract customers
What is a key risk of using loss leaders?
What is a key risk of using loss leaders?
Customers buy only discounted items
When do businesses typically use competitive pricing?
When do businesses typically use competitive pricing?
In markets with strong competition
How does product lifecycle stage affect pricing?
How does product lifecycle stage affect pricing?
Products in decline need lower prices
What happens when businesses increase prices?
What happens when businesses increase prices?
Typically sell fewer units