Answers
Uses prices that look cheaper, for example £9.99 instead of £10
Sets prices based on rivals' pricing, possibly undercutting or exceeding them
Keeps prices high to create exclusivity and luxury brand image
Sets price by adding a percentage mark-up to production cost
Starts with low price to gain market share, later increases price
Percentage added to unit cost to determine final selling price
Different customer groups with varying price sensitivity and willingness to pay
Uses very low prices to try forcing competitors out, risky
Amount a business charges customers for a product or service
Begins with high initial price, reduces price over time