Document page
Business Studies IGCSEPDF 113
212 pagesrevision 46931
PDF 113
Page image rendered from the stored file at 110 dpi; it sharpens as you zoom. Outlines are placed from each region’s stored position on the page (612 × 792 pt).
readable
Source of this text: embedded text layer. The better of the embedded text and OCR is kept.
2. Price
Price is the amount customers are willing to pay and producers are willing to sell for.
Choosing the right price is crucial for competitiveness, profitability, and positioning.
Market
Skimming
Penetration
Pricing
Method
Description
Setting a high price
for a new, innovative
product.
Advantages
Setting a low price to Builds market share
attract customers
quickly.
rapidly.
High profit margin;
recovers R&D costs.
Disadvantages
May fail if
competitors offer
cheaper alternatives.
Low revenue initially;
hard to raise price
later.
Pricing Methods