Competitive pricing- when companies monitor their competitors prices to make sure their prices are the same or at a lower rate
Premium pricing- keeping the price of a product or service high to encourage favourable perceptions of the product, based solely on price
Skimming pricing- charging a high price for a product for a limited period when it is new to the market while it remains unique to the market
Loss leader- products sold at or below cost price. They will lose money but will make profit indirectly.
Penetration pricing- the opposite of skimming. Charging a low price for a product to attract customers and gain market share
Psychological pricing- companies base the price on customers expectations about what to pay. e.g. £9.99
Mark up/cost plus pricing- adding direct and indirect costs of production together and then adding a fixed percentage called a mark up
Discrimination pricing- charging different prices for different customers e.g. train tickets- on and off peak
Promotional pricing- reducing pricing to unsustainably low levels to increase interest in the product.
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