3.13. The marketing mix: price

What is cost-plus pricing?

• The cost of manufacturing plus a profit mark-up

• Pricing based on competitors' prices

• Setting a high price for a new product

• Selling at a very low price for a short time

What does competitive pricing aim to achieve?

• To set a high price for new products

• To capture more of the market

• To change prices based on demand

• To sell at a very low price for a short time

What is penetration pricing?

• Setting a price lower than competitors to enter a market

• Pricing based on manufacturing costs

• Selling at a high price for new products

• Adjusting prices based on demand

What is price skimming?

• Changing prices based on demand

• Pricing in line with competitors

• Selling at a high price for a new product

• Setting a low price to attract customers

What is promotional pricing?

• Selling at a very low price for a short period

• Setting prices based on demand

• Pricing in line with competitors

• Setting a high price for new products

What does dynamic pricing involve?

• Setting a fixed price for all products

• Pricing based on manufacturing costs

• Changing prices based on demand

• Selling at a low price for a short time

What is price elastic demand?

• Consumers are sensitive to price changes

• Consumers are not sensitive to price changes

• Prices are fixed regardless of demand

• Prices are set based on competitors

What characterizes price inelastic demand?

• Prices are set lower than competitors

• Prices fluctuate frequently

• Consumers are not sensitive to price changes

• Consumers are very sensitive to price changes

Which pricing strategy is used to enter a new market?

• Dynamic pricing

• Promotional pricing

• Penetration pricing

• Cost-plus pricing

Which pricing strategy involves a profit mark-up?

• Dynamic pricing

• Cost-plus pricing

• Competitive pricing

• Price skimming