New Product Launch
What strategy involves setting a high initial price for a new product to maximize revenue from early adopters before lowering it later?
Price skimming
Which strategy is being used when a fast-food meal combines a burger, fries, and a drink into a single package price?
Bundle pricing
What type of promotion gives customers a free or discounted item only when they purchase another specified item?
Buy One, Get One (BOGO)
What is the strategy of ending a price with .99 or .95 to make it appear lower than the next whole number?
Charm pricing
What pricing strategy constantly shifts the price of a product or service based on real-time situations like fluctuating demand, supply, or timing?
Dynamic pricing
Which aggressive pricing strategy sets a low initial price to quickly draw attention away from competitors and gain a large market share?
Market penetration pricing
What strategy sets different price points for different items within the same line, such as offering basic vs. premium smartphones?
Product line pricing
What specific type of discount is given strictly to wholesalers or retailers within the distribution channel?
A trade discount
Which strategy intentionally sets premium prices to target consumers looking for luxury, high quality, status, and exclusivity?
Prestige pricing
Which digital pricing model offers a basic version of a service for free, but requires payment for advanced features or ad-free usage?
Freemium pricing
A business using penetration pricing launches a new item at a 30% discount off its planned future price of ₱2,000. What is the low introductory launch price?
₱1,400 (Math: 2,000 × (1 - 0.30) = 1,400)
A fast-food combo features a burger (₱120), fries (₱60), and a drink (₱50) individually. If the restaurant offers them as a bundle for ₱190, how much exact cash does the customer save?
₱40 (Math: (120 + 60 + 50) - 190 = 40)
An online clothing store runs a promotional digital campaign. If a jacket originally costs ₱3,000 and is marked down by 20%, what is the final sale price?
₱2,400 (Math: 3,000 × (1 - 0.20) = 2,400)
What strategy displays a high original price before a discounted price to serve as a visual reference point for the buyer?
Anchoring pricing (or price anchoring)
A hotel room costs ₱1,200 on normal days. Because of high holiday demand, the price is dynamically increased by 25%. What is the new holiday price per night?
₱1,500 (Math: 1,200 × (1 + 0.25) = 1,500)
A company uses price skimming for a new smartphone. They price it at ₱45,000 for early adopters, but it only costs them ₱15,000 to manufacture. What is their initial profit margin per unit?
₱30,000 (Math: 45,000 - 15,000 = 30,000)
A video game console base unit costs ₱15,000. The company uses optional product pricing and sells extra wireless controllers for ₱3,500 each. How much will a customer pay in total if they buy the base console plus two extra controllers?
₱22,000 (Math: 15,000 + (3,500 × 2) = 22,000)
A bulk wholesaler offers a 10% quantity discount to anyone purchasing more than 100 items. If the standard price is ₱50 per item, what is the total cost for a business ordering 200 items?
₱9,000 (Math: 200 items × ₱50 = ₱10,000 base. ₱10,000 × (1 - 0.10) = 9,000)
A clothing store switches a price from ₱1,000 to ₱999. Even though the savings is only ₱1, why does it feel significantly cheaper to the consumer?
Because customers focus heavily on the first number (or leftmost digit)
A mobile app has 500 free users, and 50 of those users upgrade to the premium version. What is the app's freemium conversion rate?
10% (Math: (50 ÷ 500) × 100 = 10%)
High initial prices can benefit a brand's marketplace image by creating an illusion of which two specific characteristics?
Quality and exclusivity
What strategy is a company using when it sells a main item like a printer for a low price, but charges a premium for essential items like ink?
Captive product pricing
A corporate customer utilizes a 5% cash discount for immediate payment on an invoice total of ₱40,000. Exactly how much money did the customer save?
₱2,000 (Math: 40,000 × 0.05 = 2,000)
In odd-even pricing, what elements do even-numbered price endings (like ₱100 or ₱200) typically suggest to a buyer?
Quality and elegance
A freemium software platform has 30 users upgrade to its premium tier. If the premium price is ₱100 per month, what is the monthly premium revenue generated?
₱3,000 per month (Math: 30 users × ₱100 = 3,000)