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Business Studies IGCSEPDF 17
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● Product life cycle:
The stages a product passes through — introduction, growth, maturity, and
decline.
● Extension strategy:
A method used to prolong the maturity stage of a product’s life cycle (e.g.
redesigning, rebranding, or entering new markets).
● Cost-plus pricing:
Setting a price by adding a profit mark-up to the cost of production.
● Competitive pricing:
Setting a price similar to or slightly lower than competitors to attract customers.
● Penetration pricing:
Setting a low price when entering a new market to encourage customers to try
the product.
● Price skimming:
Setting a high price for a new product initially, then lowering it later.
● Promotional pricing:
Temporarily reducing the price to boost short-term sales.
● Dynamic pricing:
Changing prices frequently, often online, based on demand and market
conditions.
● Price elastic demand:
When demand changes significantly due to a small change in price.
● Price inelastic demand:
When demand changes little despite a change in price.
● Distribution channel:
The route a product takes from producer to consumer.
● Agent:
An independent person or business authorised to sell or distribute products for a
company.
● Wholesaler:
A business that buys goods in bulk from manufacturers and sells them in smaller
quantities to retailers.
● Retailer:
A business that sells products directly to consumers.
● E-commerce:
The buying and selling of goods or services over the internet.
● Promotion mix:
The combination of promotional methods used by a business to communicate
with customers.