Pricing strategies
Below are some vocabulary words related to pricing strategies that can help you in the IELTS band scores 4.5-6.0:
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Cost-Plus Pricing:
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Setting the price by adding a markup to the cost of producing the product.
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Penetration Pricing:
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Offering a low initial price to quickly gain market share.
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Skimming Pricing:
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Setting a high initial price and gradually lowering it over time.
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Competitive Pricing:
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Setting the price based on the prices of competitors.
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Value-Based Pricing:
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Setting the price based on the perceived value of the product to customers.
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Premium Pricing:
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Setting a high price to create a perception of luxury and exclusivity.
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Economy Pricing:
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Offering products at low prices to appeal to price-sensitive customers.
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Dynamic Pricing:
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Adjusting prices in real-time based on demand and other market factors.
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Bundle Pricing:
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Offering multiple products or services together at a discounted price.
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Psychological Pricing:
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Setting prices just below a round number (e.g., $9.99) to create a perception of a lower price.
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Price Discrimination:
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Charging different prices to different customer segments based on their willingness to pay.
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Promotional Pricing:
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Temporarily reducing prices to stimulate sales or clear inventory.
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Loss-Leader Pricing:
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Offering a few products at a very low price to attract customers to purchase other, higher-priced items.
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Geographical Pricing:
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Setting different prices for products in different geographic regions.
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Price Matching:
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Matching the prices offered by competitors for the same product.
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Cost Leadership:
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Competing by offering the lowest prices in the market.
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Price Elasticity:
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A measure of how sensitive demand is to changes in price.
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Dynamic Discounting:
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Offering discounts for early payment or prompt settlement of invoices.
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Target Pricing:
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Setting prices to achieve a specific target or return on investment.
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Predatory Pricing:
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Setting very low prices with the intent to drive competitors out of the market.
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Marginal Cost Pricing:
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Setting the price equal to the additional cost of producing one more unit.
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Price Hiking:
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Raising prices suddenly and significantly.
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Price War:
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A situation in which competitors continuously lower prices to gain a competitive advantage.
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Price Fixing:
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Illegally colluding with competitors to set prices at a certain level.
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Price Optimization:
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Using data and algorithms to determine the best price for a product.
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Resale Price Maintenance:
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Setting a minimum price at which a product must be sold by retailers.
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Price Gouging:
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Unreasonably raising prices during times of crisis or emergency.
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Value Pricing:
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Setting prices based on the overall value delivered to customers.
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Predatory Pricing:
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Selling products at very low prices to eliminate competitors.
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Price Control:
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Government regulation of prices in certain industries.
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Bundled Pricing:
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Offering a package of products or services together at a single price.
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Freemium Pricing:
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Offering a basic version of a product for free and charging for premium features or upgrades.
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Two-Part Pricing:
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Charging customers a fixed fee plus a variable fee based on usage or quantity.
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Razor-Blade Model:
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Selling a primary product at a low price and profiting from the sales of related consumable products.
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Price Skimming:
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Setting a high initial price to target early adopters and then gradually lowering the price to attract more price-sensitive customers.
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Pay What You Want (PWYW):
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Allowing customers to pay any amount they choose for a product or service.
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Competition-Oriented Pricing:
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Setting prices based on the prices charged by competitors.
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Loss Minimization Pricing:
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Setting prices to minimize losses in a declining market.
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Cost Leadership:
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Competing by offering the lowest prices in the market.
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Perceived-Value Pricing:
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Setting prices based on the value that customers perceive in the product.
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Remember to practice using these words in various sentences and scenarios to enhance your vocabulary and language skills. Good luck with your IELTS preparation!
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