The importance of price (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What does price directly impact within the marketing mix?
What does price directly impact within the marketing mix?
Customer quality perception & profitability
How do customers typically use price?
How do customers typically use price?
As an indicator of quality
What can happen if a business prices too low compared to competitors?
What can happen if a business prices too low compared to competitors?
Trigger price wars hurting profitability
Why do branded products generally command higher prices than non-branded products?
Why do branded products generally command higher prices than non-branded products?
More expensive to produce & promote
When does a premium pricing strategy work effectively?
When does a premium pricing strategy work effectively?
When customers value exclusivity/prestige
What is competitor pricing based on?
What is competitor pricing based on?
Comparing average market price
Why might a business use a low pricing strategy when launching a product?
Why might a business use a low pricing strategy when launching a product?
To encourage product trial
For a price increase to succeed, what must customers perceive?
For a price increase to succeed, what must customers perceive?
Sufficiently high value vs competitors
What is the relationship between price and profit?
What is the relationship between price and profit?
Not linear; balance needed
What type of customers are attracted when a business lowers prices to clear stock?
What type of customers are attracted when a business lowers prices to clear stock?
Price-conscious customers
Why might new businesses entering a market use low prices?
Why might new businesses entering a market use low prices?
To attract customers & build market share
How do businesses adjust prices based on seasonal demand patterns?
How do businesses adjust prices based on seasonal demand patterns?
Higher in peak periods, lower in quiet