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This type of demand happens when a small price change causes a large change in customer demand.
What is elastic demand?
This is one of the biggest factors affecting how companies set prices internationally.
What is competition?
This pricing strategy focuses on earning the highest possible profit quickly when entering a market.
What is price skimming?
This strategy involves introducing products at low prices to attract customers.
What is price penetration?
This includes the money spent to create or manufacture a product.
What are production costs?
Gasoline and prescription drugs are examples of this type of demand.
What is inelastic demand?
A market with many businesses selling similar products is called this.
What is a saturated market?
Price skimming works best when a product is this.
What is unique?
After gaining loyal customers, companies usually do this.
What is increasing prices?
Shipping and transportation costs are important in this type of business.
What is international business?
In countries where demand is highly elastic, companies often do this to stay competitive.
What is keep prices lower?
In less saturated markets, businesses can often charge...
What is a higher price?
Customers may buy expensive products early to become this.
What are opinion leaders?
Buy-one-get-one-free deals are an example of this pricing strategy.
What is price penetration?
These are wages, salaries, and benefits paid to workers involved in making a product.
What are labour costs?
Human resources staff are an example of this type of cost.
What are indirect labour costs?
Wood used to build furniture is an example of this type of material cost.
What is a direct material cost?
These costs are fixed operating costs not directly tied to one product or service.
What are overhead costs?
This is the value of the next best alternative that is given up.
What is opportunity cost?
Opportunity cost is commonly considered when making these types of decisions.
What are investment decisions?