Please enable JavaScript.
Coggle requires JavaScript to display documents.
Price - Coggle Diagram
Price
Price Skimming
Setting a high price first and then
lowering it later
Avantages
Segment the market
Make costs back quickly
Disadvantages
Short-term benefits
Research needed
Hard to predict demand
Competition-based pricing
Choosing a price based on what competitors are charging
Prices could be the same or price wars
Business compete in non-price competition
Cost-plus pricing
Adding a mark-up to products
Common in retailers
Penetration pricing
Drawbacks
Hurts profits
Negative response when prices raised
Reason
Gain market share
Gain customers first, then
increase price
Attract buyers (other businesses)
Common in mass markets
Promotional Pricing
Lowering the price of an existing product for a short
period of time.