Words

Cost-plus
pricing

Definition
The cost of
manufacturing
the products
plus a profit
mark-up

Competitive
pricing

The product is
priced in line
with or just
below
competitors
prices to try or
capture more
of the market.

Psychological
pricing

Approach when
an particular
attention is
paid to the
effect that the
price of a
product will
have upon
consumers
perceptions of
the product.
When the price
is set lower
than the
competitors
prices in order
to be able to
enter a new
market.

Penetration
pricing

Price skimming

Where a high
price is set for
a new product

Vietnamese
Chi ph lm
cng vi tin
li.

Sentences
We decide to
use the costplus pricing
method as
there were
many elements
to consider that
were both
variable and
fixed.
Sa gi bng
A company sell
hoc thp hn
soap have to
i th.
use
competitive
pricing method
or consumers
will buy their
competitors
brands.
Gn bng, v d Psychological
nh l: $99 gn pricing creates
bng $100
the impression
of being much
cheeper.

Gi thp hn
i th c
ch ng trong
th trng

t mc gi
cao cho sn
phm mi

A company
launches a new
chocolate bar
at a price
several cents
below the
prices of similar
chocolate bars
that are
already on the
market, this
company is
using
penetration
pricing.
A new
computer
games system

on the market.

Promotional
pricing

When a product Gi t nhin h

is sold at a very trong 1 thi
low price for a
gian nht nh
short period of
time.

Dynamic
pricing

Charged
different prices
for the same
product
because have
different
demand levels.

Price elasticity

A measure of
the
responsiveness
of demand to a
change in
price.

Mi ngi 1

is invented
using price
skimming
because it has
better graphics
than the old
systems,
consumers will
be willing to
pay the high
price.
If a shop have
a lot of unsold
clothes theyll
use
promotional
pricing to
encourage the
customers to
buy.
You need to
figure out a
way to use
dynamic
pricing to your
advantage to
try to increase
your overall
profits.
The price of
gas today is
based on the
elasticity of
demand,
especially in
the
summertime
when people
like to travel.