| A | B |
|---|
| Competition oriented | setting a price based on what competitors charge |
| Cost plus pricing | costs plus standard markup for individual products/services |
| Skimming | setting a high price due to demand for a new product |
| Penetration pricing | setting an initial low price for a new product to encourage purchases |
| Profit margin | the extra which is added to the cost to ensure money is made |
| Loss leader | prices set below cost to entice people into stores |
| Promotional pricing | Designed to increase sales in the short term |
| Demand oriented pricing | Used with products that have inelastic demand |
| Markup Pricing | Adds a predetermined percentage to the cost of the product |
| Fixed pricing | One-Price Policy |
| Variable Pricing | Flexible-Price Policy |
| Unit Pricing | Price of product per unit of standard measure |
| Price Lining | Used for economy, standard and luxury models |
| Prestige Pricing | Equate high price with high quality |
