Pricing Strategies Quiz

Setting a high price for a new product to maximize revenue from early adopters, who are willing to pay a premium for exclusivity and innovation.

The product's quality and image must support the high price, and a significant market must exist at that price.

The cost of producing a smaller volume cannot be so high that it negates the advantage of charging more.

Competitors should not easily enter the market and undercut the high price.

Setting a low price for a new product to attract a large number of buyers and capture a significant market share.

The market must be highly price sensitive, meaning customers are more likely to buy if the price is low.

Production and distribution costs must fall as sales volume increases, making it possible to offer a low price and still make a profit.

The low price must help keep out the competition, discouraging new rivals from entering the market.

Setting prices for different products within a product line, based on cost differences, customer perception of features, and competitor pricing.

Pricing optional or accessory products sold alongside a main product, like a car's sunroof or leather seats.

Setting a price for products that are essential to use with a main product, like ink cartridges for a printer.

Setting a price for by-products, often produced as a result of making the main product, to make the main product's price more competitive.

Combining several products and offering the bundle at a reduced price, encouraging customers to buy more.

Reducing prices for a limited time to stimulate sales, create urgency, and increase excitement.

Offering a straight reduction in price during a specified period, like a holiday sale or early bird discount.

Promotional money paid by a manufacturer to retailers for featuring their products in their store or advertising.

Offering different prices to different customer segments based on factors like age, income, location, or loyalty.

Adjusting prices based on geographic location to account for transportation costs or local market conditions.

Charging different prices based on the time of purchase, like peak season rates for hotels or airline tickets.

Using prices to convey a product's perceived value or image, rather than simply reflecting costs.

Prices that consumers have in their minds and use as a reference when evaluating a product's price.

Using prices to signal or emphasize a product's unique features or benefits, like using 'sale' or 'special' labels.

Using prices that end in odd numbers, like $9.99 instead of $10, to create a perception of a lower price.

Setting prices for customers located in different parts of the country or world, considering factors like transportation costs.

The seller charges the freight cost from the factory to the customer's destination, and the customer is responsible for the shipping.

The seller charges the same price plus freight to all customers, regardless of their location, simplifying shipping costs.

The seller divides the country into zones and sets different prices for customers within each zone, based on distance.

The seller uses one city as a reference point and charges all customers the freight cost from that city to their location.

The seller absorbs all or part of the freight costs to secure the business, making the product more attractive in a specific area.

Continuously adjusting prices based on real-time factors like demand, competition, and customer behavior.

Setting prices for products sold in international markets, often adjusted to reflect local market conditions and costs.