Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. This mind map introduces Pricing Strategies.

Pricing Strategies - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

View larger version of the mind map.

• Market Skimming
  
  • High Price/Low volume
• Value Pricing
  
  • Price based on consumer perception
• Loss Leader
  
  • Sold below cost to attract sales elsewhere
• Psychological Pricing
  
  • £1.99!
• Going Rate (Price Leadership)
  
  • Prices set following lead of rivals
• Tender Pricing
  
  • Bids for work
• Price Discrimination
  
  • Different price, same good/service
• Destroyer Pricing/Predatory Pricing
  
  • Aims to force out competitors
• Absorption/full cost Pricing
  
  • Set price to cover FC and VC
• Marginal Cost Pricing
  
  • Set price in relation to MC
• Target Pricing
  
  • Target level of profit
• Contribution Pricing
  
  • Variable/Direct Costs + contribution to Fixed costs
• Cost-Plus Pricing
  
  • Average Cost + mark up
• Influence of Elasticity
  
  • Price Inelastic
  • Price Elastic
• Penetration Pricing
  
  • Low price/High volume