Unit 1: Marketing
Pricing considerations
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Pricing - perceived value

The value a customer places on a
particular good or service. This may
not concur with the value which the
organisation places on the product
or service. The perceived value is
very individual
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Price - demand elasticity

When a product has a fall in price
and this leads to a large increase in
demand it is known as being elastic
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HNC/HND Business
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Price - ethical issues
Price fixing
 Predatory pricing – where a firm
cuts it costs with the aim of driving
out the competition e.g. B.A. and
Easyjet
 Deceptive pricing – a price set low
so that the company can claim this
low pricing in its advertising, against
competition

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Price - ethical issues
Price discrimination – when a better
price is offered for the same product
resulting in unfair competitive
advantage
 Product dumping – when products
are sold abroad for a lower price

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