Podcast
Questions and Answers
Which pricing method involves setting the price by adding a fixed amount to the cost of making the product?
Which pricing method involves setting the price by adding a fixed amount to the cost of making the product?
- Price skimming
- Cost plus pricing (correct)
- Penetration pricing
- Loss leader pricing
What is a disadvantage of cost plus pricing?
What is a disadvantage of cost plus pricing?
- Quick and easy calculation
- Ensures covering all costs
- Price might be set higher than competitors or customer willingness (correct)
- Price is set lower than competitors
What is the primary aim of loss leader pricing?
What is the primary aim of loss leader pricing?
- Attract customers into the shop (correct)
- Sell off unwanted stock quickly
- Increase long-term market share
- Maximize profits on each item sold
When is price skimming most suitable according to the text?
When is price skimming most suitable according to the text?
What pricing method should be used for new products according to the text?
What pricing method should be used for new products according to the text?
How is Price Elasticity defined in the text?
How is Price Elasticity defined in the text?
What is the main purpose of price skimming?
What is the main purpose of price skimming?
Which pricing method focuses on setting a very low price to attract customers quickly?
Which pricing method focuses on setting a very low price to attract customers quickly?
What is a disadvantage of implementing price skimming?
What is a disadvantage of implementing price skimming?
In competitive pricing, what can businesses compete on besides the price?
In competitive pricing, what can businesses compete on besides the price?
What is a key advantage of penetration pricing?
What is a key advantage of penetration pricing?
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