Identify pricing strategies.

Identification should include

  • cost-based pricing
  • demand-based pricing
  • competition-based pricing.

Process/Skill Questions:

  • What are examples of demand-based pricing? Of competition-based pricing?
  • How might pricing strategies vary between specific industries?
  • What effect does psychological pricing have on the business’s price choice? On the customer’s decision to purchase the product?
  • What influences the choice of a pricing strategy in each stage of the product life cycle?