The Pricing Policy (Grade 11 NSC Matric Business Studies): Flashcards
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Pricing policy
Pricing policy
Strategy based on competitive conditions in marketplace
Price
Price
Amount of money customers pay for a product or service
Cost-based pricing
Cost-based pricing
Prices set on production costs plus profit margin
Mark-up pricing
Mark-up pricing
Selling price as percentage above cost price
Customer-based pricing
Customer-based pricing
Prices based on what customers willing and able to pay
Competition-based pricing
Competition-based pricing
Setting prices in relation to competitors' prices
Promotional pricing
Promotional pricing
Temporarily reducing prices to attract more customers
Penetration pricing
Penetration pricing
Very low prices when first introducing products to market
Psychological pricing
Psychological pricing
Using emotional responses (e.g., R6.99 vs R7.00)
Skimming prices
Skimming prices
Higher prices when launching innovative products