2.2.2 Price

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All 12 cards in this set

What best describes 'price' in a business context?: Amount charged for a product
Which factor should a business consider when setting a price?: Production cost of the product
Which is an advantage of cost-based pricing?: Helps cover costs and profit
What describes competition-based pricing?: Setting prices based on rivals' charges
Which is an advantage of competition-based pricing?: Helps retain customers from rivals
What is penetration pricing?: Low initial price then raises later
Which is an advantage of penetration pricing?: Attracts customers and builds loyalty
When is price skimming most suitable?: When early demand is strong
What is an advantage of price skimming?: Maximises profits from early buyers
What is premium pricing mainly used to do?: Position product as luxury or exclusive
Why is predatory pricing risky for the business using it?: Can cause losses for the business
Which is an example of psychological pricing?: Using nine pounds ninety-nine pence

Round complete