| A | B |
|---|
| determining the initial price level of what is sold | pricing strategy |
| this pricing strategy does not give a company a competitive advantage | Parity pricing |
| Difference between an item's cost and a sale price | markup |
| Businesses that sell products that are extremly similar to their competitors should use | parity pricing |
| if implemented correctly, pricing strategies can also act as | marketing strategy |
| pricing a new product at or close to competitors' prices | parity pricing |
| when a company sells a product at a low price but charges high prices for items needed to use that product -this strategy is known as | captive pricing |
| item cost x % of increase | = markup |
| refers to the sensitivity of customers to different price levels | Elasticity |
| Another name for skimming pricing | prestige pricing |
| strategy creates high sales initially but also produces a lower profit | penetration pricing |
| offers complementary or corresponding products in a package that is sold at a single price | bundle pricing |
| the amount paid by customers for a product /service price | price |
| the amount paid by the business to make the product | cost |
| introducing products at a very high price in order to create a prestigious image | skimming price strategy |
| offering a product at a price too low or too high will | lose the business money |
