Price

• What is one purpose of packaging?

  Protection
• How does packaging protect products?

  It reduces the risk of damage
• Why is storage important in packaging?

  It keeps products safe before sale
• What does packaging do to keep products fresh?

  Prevents contamination
• What information is typically included on packaging?

  Name, address, ingredients, safety
• What is one way packaging helps identify a product?

  Through advertising and previous purchases
• How does packaging contribute to brand loyalty?

  It helps customers recognize the product
• How does packaging encourage impulse buying?

  By making the product stand out in display
• What is the definition of price in business?

  The amount of money for a product
• What is penetration pricing?

  Setting a low price to encourage sales
• What is a disadvantage of penetration pricing?

  People may question the product's quality
• What is price skimming?

  Selling at a high price for initial profits
• What is a disadvantage of price skimming?

  Some customers may not afford high prices
• What is cost-plus pricing?

  Adding profit to production costs for pricing
• What is an advantage of cost-plus pricing?

  Ensures profit on each good sold
• What is psychological pricing?

  Setting prices just below whole pounds
• What is a disadvantage of psychological pricing?

  Some customers may not be convinced to buy
• What is competitive pricing?

  Pricing at or below competitors' prices
• What is a disadvantage of competitive pricing?

  Customers may not switch from rivals
• What is price discrimination?

  Charging different prices to market segments
• What is an advantage of price discrimination?

  Attracts customers with lower pricing
• What is a loss leader strategy?

  Products sold at a loss to attract customers
• What is a disadvantage of a loss leader strategy?

  Customers may expect low prices long-term
• What are the purposes of packaging?

  • Protection from damage
  • Storage before sale
  • Keeping products fresh and clean
  • Providing information (ingredients, safety)
  • Identifying products for brand loyalty
• What are the pricing strategies in business?

  1. Penetration Pricing
  2. Price Skimming
  3. Cost Plus Pricing
  4. Psychological Pricing
  5. Competitive Pricing
  6. Price Discrimination
  7. Loss Leader
• What are the advantages and disadvantages of penetration pricing?

  Advantages:

  • Attracts customers with low prices

  
  

  Disadvantages:

  • Questions over product quality when prices rise
• What are the advantages and disadvantages of price skimming?

  Advantages:

  • Attracts early adopters

  
  

  Disadvantages:

  • Some customers may not afford high prices
• What are the advantages and disadvantages of cost-plus pricing?

  Advantages:

  • Ensures profit on each good sold

  
  

  Disadvantages:

  • May not work in competitive markets
• What are the advantages and disadvantages of psychological pricing?

  Advantages:

  • Can nudge customers to purchase

  
  

  Disadvantages:

  • Some may not be convinced to buy
• What are the advantages and disadvantages of competitive pricing?

  Advantages:

  • Ensures price competitiveness

  
  

  Disadvantages:

  • Customers may not switch from rivals
• What are the advantages and disadvantages of price discrimination?

  Advantages:

  • Attracts customers with lower pricing

  
  

  Disadvantages:

  • Some customers may choose rivals
• What are the advantages and disadvantages of loss leader strategy?

  Advantages:

  • Boosts sales of other products

  
  

  Disadvantages:

  • Customers may expect low prices long-term