IGCSE Business Studies: Price (Lesson 3)

Price skimming is often used for products with high research and development costs.

• True

• False

Which of the following products would NOT likely use price skimming?

• innovative products

• products with a high quality

• products with a premium image

• products with a value-for-money image

An early adopter is

• a customer who gets up early

• a customer who likes to purchase a product as soon as it is launched onto the market

• a business that produces innovative products

• An power plug you use with your devices

Which of the following is NOT a benefit of using price skimming?

• It helps to portray a premium image

• it helps to get back money spent on research and development

• It might not suit customers who make value-for-money decisions

• It allows the business to make profits before other businesses enter the market

Promotional pricing is a permanent pricing strategy where a product is sold for a very low price

• True

• False

Buy 2, pay for 1, is the same as Buy one get one free (BOGOF)

• True

• False

Promotional pricing is most often used when

• introducing a new product to the market

• building an image of high quality

• marketing innovative products

• clearing unwanted stock

Which of the following is NOT a limitation of promotional pricing?

• It increases customers' perception of value-for-money

• customers might doubt the quality of the product

• the price might not cover the costs, in which case a loss will be made

• it may lead to a price war