15 Questions
______- this refers to setting low prices to increase the price once the desired market share is achieved (e.g., mobile app-based transportation service offering reduced booking fee of ₱15 as its introductory price).
Penetration pricing
______- this refers to two or more products or services in one reduced price (e.g., 3-in-1 coffee for ₱8.00, manicure and pedicure for only ₱150).
Bundling
______- this is the opposite of penetration pricing where prices are initially high and then they are lowered to offer the product or service to a wider market (e.g., a real estate company offering top-tier projects is now offering low cost housing of same quality to serve the middle market segment).
Skimming
______- this refers to benchmarking prices with the competitors (e.g., milk tea prices are competitively priced)
Competitive pricing
______- this refers to pricing different products or services within a parallel product array using varying price points (e.g., LED TV is more expensive than the LCD.
Product line pricing
Which pricing strategy initially sets high prices and then lowers them to reach a wider market?
Skimming
What pricing strategy involves offering two or more products or services at a reduced price?
Bundling
What pricing strategy involves setting low prices to increase market share, with the intention of raising prices later?
Penetration pricing
What pricing strategy involves pricing different products within a product array using varying price points?
Product line pricing
Which pricing strategy benchmarks prices with competitors?
Competitive pricing
1
Bundling- this refers to two or more products or services in one reduced price (e.g., 3-in-1 coffee for ₱8.00, manicure and pedicure for only ₱150)
2
Penetration pricing- this refers to setting low prices to increase the price once the desired market share is achieved (e.g., mobile app-based transportation service offering reduced booking fee of ₱15 as its introductory price)
3
Skimming- this is the opposite of penetration pricing where prices are initially high and then they are lowered to offer the product or service to a wider market (e.g., a real estate company offering top-tier projects is now offering low cost housing of same quality to serve the middle market segment)
4
Competitive pricing- this refers to benchmarking prices with the competitors (e.g., milk tea prices are competitively priced)
5
Product line pricing- this refers to pricing different products or services within a parallel product array using varying price points (e.g., LED TV is more expensive than the LCD.
Study Notes
Pricing Strategies
- Penetration Pricing: setting low prices to increase market share, with the intention of raising prices later (e.g., mobile app-based transportation service offering reduced booking fee of ₱15 as its introductory price)
- Bundle Pricing: two or more products or services in one reduced price (e.g., 3-in-1 coffee for ₱8.00, manicure and pedicure for only ₱150)
- Skim Pricing: initially high prices are set, and then they are lowered to offer the product or service to a wider market (e.g., a real estate company offering top-tier projects is now offering low-cost housing of same quality to serve the middle market segment)
- Competitive Pricing: benchmarking prices with competitors (e.g., milk tea prices are competitively priced)
- Product Line Pricing: pricing different products or services within a parallel product array using varying price points (e.g., LED TV is more expensive than the LCD)
Test your knowledge of pricing strategies with this quiz! Learn about bundling, penetration pricing, skimming, and more. Challenge yourself with scenarios and examples to see how well you understand these key pricing concepts.
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