Question 1(b)
[Maximum number: 3]
Explain one pricing method.
CAIE A-Level Business 3.3.4 Pricing Methods
Practise selecting and evaluating cost-based, competitive, penetration, skimming, discrimination, dynamic or psychological pricing and calculating a price from cost and mark-up.
How this is tested
- identify the pricing method from its objective and explain how the business would apply it
- calculate a cost-plus price from unit cost and the stated mark-up without treating margin as mark-up
- evaluate suitability using demand, competition, positioning, costs and the stage of the product