2.2.2 Price - Word Drop

Price is the amount a business charges for a product. Cost-based pricing adds a mark-up to the ______ of making a product to ensure a profit. Competition-based pricing charges a ______ price to competitors, though undercutting too far risks a loss. Penetration pricing sets a very ______ initial price before raising it. Price skimming starts with a ______ price and reduces it as demand eases. Premium pricing keeps prices high for luxury brands to create a sense of ______. Predatory pricing sets prices very low to remove rivals, but it can make a ______. Psychological pricing makes a price seem more ______, such as £9.99 instead of £10.

New ______ can allow a business to charge a premium price, but prices fall when a newer model is launched. Strong ______ can force a business to change its price if a rival improves a product or cuts prices. Market ______ matter because different groups of customers will pay different amounts. The product ______ influences pricing, from introduction and growth to maturity and decline.