Pricing Strategies
What pricing strategy involves setting a low price to attract customers and build market share quickly?
Penetration Pricing
What term describes the psychological impact of price on a consumer’s willingness to buy a product?
Price Sensitivity
Which economic factor refers to the effect of inflation or deflation on the purchasing power of consumers?
Economic Conditions
What is the term for the amount of money consumers have available after buying essential goods and services?
Discretionary Income.
Which pricing strategy is typically used when companies set a high price initially to target consumers willing to pay a premium for a new or innovative product?
Skimming Pricing
What is the term for when consumers perceive a product as higher quality simply because it is priced higher?
Price-Quality Relationship
What term describes how interest rates set by central banks affect the cost of money and consumer spending?
Monetary Policy.
What term describes a pricing method in which businesses set prices to match their revenue objectives, often using return on investment as a measure?
ROI (Return on Investment) Pricing