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Price (High/ premium pricing (Priced higher than competitors., Used for…
Price
High/ premium pricing
- Priced higher than competitors.
- Used for unique or high quality items
- Gives perception of being luxury
Low price
- Priced lowers than competitors
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Cost- plus pricing
- Costs to buy or produce product are calculated and then profit wanted is added on.
Market skimming
- Price is set high then once early
adopters have bought it, price is
lowered to market price.
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Destroyer pricing
- Price is set artificially low in order to
eliminate smaller completion.
Once eliminated price is raised again.
Penetration pricing
- To enter a competitive market, price is initially set low.
Once customers are loyal, price is raised to market.
Promotional pricing
- where price is reduced for a short period of time
To enhance sales.
Discrimination pricing
- where prices are set based on the level of demand
E.g peak train times and more expensive holidays during school holidays.