by hiaja | Aug 22, 2022 | Managing Price
06. According to the textbook, what is Dynamic or Surge Pricing? Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, is a pricing strategy in which businesses set flexible prices for products or services based on current market...
by hiaja | Aug 22, 2022 | Managing Price
05. In “The Undercover Economist” video, how are consumers shown incriminating themselves? To get customers to give themselves away, companies have to sell products that are at least slightly different from each...
by hiaja | Aug 22, 2022 | Managing Price
04. Can you remember all eight of the pricing tactics in the online video? The Loss Leader Penetration pricing Price Skimming Psychological pricing Product line pricing Bundling & Options pricing Discounting Changing the size of the...
by hiaja | Aug 22, 2022 | Managing Price
03. Name the three key approaches to setting prices, and the three key strategies Some approaches for setting prices: Cost-plus pricing Going rate pricing Demand-led pricing pricing (aka market-led pricing or percieved value pricing) You’ll need to understand all of...
by hiaja | Aug 22, 2022 | Managing Price
02. Can you explain elasticity of demand? Elasticity of Demand When the price is elastic, demand for the product varies according to the price charged This is sometimes known as Price Sensitivity Elasticity of Demand When the price is inelastic, demand for the product...
by hiaja | Aug 22, 2022 | Managing Price
01. What is a loss leader? The Loss Leader A product that is priced at or below cost in order to get you into the store or to visit the website Aims to drive footfall and therefore sales Which loss leaders have got you to visit a store or website...
