Which of the following is a reason why premium products are sold for high prices?
They are always exclusive brands
To give the impression of higher quality
To stay affordable
What should a business consider unit cost when setting prices?
To make a profit
To protect its brand image
To meet demand
What enables some manufacturers to charge much higher prices for products that are almost identical to those of their competition?
Technology
Brand image
Mass market
Which of these best defines a pricing strategy?
An approach that ensures that a business always covers the cost of producing a product
A method used by a business to ensure that it is always able to charge as high a price as possible
The approach that a business takes when deciding how much to charge for its products
Which of the following is not a recognised pricing strategy
Loss leader
Profit maker
Penetration
A business wants to launch a new healthy snack bar. The market is crowded with similar products. Which of these pricing strategies would be most suitable?
Premium pricing
Penetration pricing
Competitive pricing
What best describes loss leader pricing?
Where a high price is charged to achieve a high profit margin
Where a business charges less for a product than it cost them to produce
Where a business works out their cost price, and adds on the profit margin they wish to achieve
What is the most appropriate pricing strategy for a new razor, where razor blades will be sold separately with a high profit margin?
Cost-plus pricing
What does psychological pricing refer to?
Where pricing appears cheaper than it really is, for example £5.99 instead of £6
Where a high price is charged for a products
Where a business charges a high price and slowly reduces it
What would be an appropriate pricing strategy for a new model of TV?
Price skimming