| A | B |
|---|
| Competition based pricing | setting a price based on what competitors charge |
| Cost plus pricing | fixing a price by adding a & profit margin to the cost of production of the good |
| Skimming or creaming | selling a product at a high price |
| Penetration pricing | setting an initial low price for a new product so that it is attractive to consumers |
| Price discrimination | setting a different price for the same product in different segments of the market |
| Profit margin | the extra which is added to the cost to cover the profit being made |
| Loss leader | prices set below cost. Often used to entice people into stores |
| Competitive pricing | setting prices close to rivals. Competition is based around non price factors |
| Promotional pricing | Designed to increase sales in the short term |
