Pricing Strategy

Front

What is the definition of price?

Back

The amount of money given by a buyer to a seller in exchange for goods or services

Front

What are the components of the marketing mix?

Back

Product, price, place, promotion

Front

How can a business determine the most effective pricing strategy?

Back

By identifying the company's pricing position, pricing segment, pricing capability, and competitive pricing reaction strategy

Front

Why is it important for a business to have a detailed knowledge of pricing techniques?

Back

To avoid losses and ensure profitability

Front

How can a business determine the price for a product with multiple competitors?

Back

The price should be in line with competitors' prices

Front

What is the purpose of offering discounts and promotions?

Back

To attract customers and increase sales

Front

Why do online stores often list prices as 99 or 999 instead of rounding to the nearest whole number?

Back

To create the perception of a lower price

Front

What is the purpose of buy one get one free offers?

Back

To encourage customers to buy more

Front

What factors should be considered when determining the price of a product?

Back

Cost of production, demand, competition

Front

Why is it important for multinational companies to have a pricing strategy?

Back

To ensure consistency and profitability across different markets