The importance of price (Edexcel GCSE Business): Flashcards
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Practise the cards
15 cards from this deck
What's price's role in the marketing mix?
What's price's role in the marketing mix?
Crucial - impacts quality perception, profit & demand
Price as a communication tool
Price as a communication tool
Sends signals about what to expect from product/service
How customers use price
How customers use price
As an indicator of quality
What higher prices suggest
What higher prices suggest
Better quality, craftsmanship, or enhanced features
Small price changes in competitive markets
Small price changes in competitive markets
Can significantly influence demand
Risk of pricing too high vs competitors
Risk of pricing too high vs competitors
Customers may switch to alternatives
Branded vs non-branded prices
Branded vs non-branded prices
Branded products command higher prices
Premium pricing strategy
Premium pricing strategy
High prices for exclusivity, quality or prestige
Competitor pricing strategy
Competitor pricing strategy
Setting prices based on competitors' average market price
Low pricing strategy purpose
Low pricing strategy purpose
Encourage trial, gain market share, clear stock
What's key for successful price increases?
What's key for successful price increases?
Customers must perceive sufficiently high value
Price-profit relationship
Price-profit relationship
Not linear - need optimal balance of price & volume
Clearing stock pricing tactic
Clearing stock pricing tactic
Lower prices to attract price-conscious customers
Market penetration pricing
Market penetration pricing
Low prices to attract customers from competitors
Seasonal pricing adjustments
Seasonal pricing adjustments
Higher in peak periods, lower in quiet times