Pricing Strategies
This pricing strategy sets prices lower than competitors to attract customers.
penetration pricing
his factor influences consumer purchases based on past experiences and emotions.
brand loyalty
A sudden increase in gas prices due to international conflicts is an example of this external force.
geopolitical influence
Companies price luxury goods higher because their target market values this.
exclusivity
The amount of money a customer pays for a product or service
price
This strategy involves setting a high price initially and lowering it over time
price skimming
The process where consumers gather, compare, and evaluate options before making a purchase.
decision-making
A tax placed on imported goods that raises their price is called this.
a tariff
Fast-food restaurants use this pricing strategy to appeal to price-sensitive consumers.
value pricing
The process of setting and adjusting prices to maximize profit and attract customers.
pricing strategy
Companies use this strategy when they bundle multiple products together at a lower combined price
bundle pricing
People are more likely to buy a product when they see others doing the same. This is an example of what effect?
social proof
he relationship between the price of a product and the demand for it
price elasticity
Targeting different income groups with different pricing strategies is known as this.
price segmentation
The relationship between the price of a product and the demand for it.
price elasticity
This pricing strategy adjusts prices based on supply and demand, often seen in airline and hotel bookings.
dynamic pricing
The feeling of regret after making a purchase is called this.
buyer’s remorse
The total cost incurred by a company to produce a product, including materials and labor.
cost of production
A brand targeting teenagers might use discounts to attract this type of customer.
price-sensitive consumers
The total cost incurred by a company to produce a product, including materials and labor.
cost of production
When companies set a product’s price just below a round number (e.g., $9.99 instead of $10), they are using this strategy.
psychological pricing
This theory explains how consumers weigh the benefits of a product against its cost
he perceived value theory
The illegal practice of setting extremely low prices to drive competitors out of business.
predatory pricing
The pricing method where a company adjusts prices based on what its ideal customers are willing to pay.
value-based pricing
The illegal practice of setting extremely low prices to drive competitors out of business.
predatory pricing