Pearson Edexcel A Level International Business (133) 4 Pricing Strategies

Pearson Edexcel A Level International Business (133) 4 Pricing Strategies

This lesson covers:

a) Types of pricing strategy:
• cost plus (mark-up on unit cost)
• price skimming
• penetration
• predatory
• competitive
• psychological.

b) Factors that determine the most appropriate pricing strategy for a particular situation:
• number of USPs/amount of differentiation
• price elasticity of demand
• level of competition in the business environment
• strength of brand
• stage in the product life cycle
• costs and the need to make a profit.

c) Changes in pricing to reflect social trends:
• online sales
• price comparison sites.

This lesson is written by Sarah Hilton for Revisionstation