List the four types of pricing strategies.

Question

Accepted Answer

The four types of pricing strategies are:

1. **Cost-plus pricing** — The manufacturer charges a price to cover the cost of producing a product plus a reasonable profit.
2. **Penetration pricing** — The price of a product is initially set lower than the eventual market price to attract new customers and increase market share.
3. **Skimming (Creaming) pricing** — Goods are sold at higher prices so that fewer sales are needed to break even, commonly used when new products like smartphones enter the market.
4. **Variable price method** — Different rates are extended to different customers for the same goods or services, depending on factors like order size, bargaining power, or ability to pay.