Indicate by placing a tick (✔) in the correct box, the pricing strategy to which each statement relates - Leaving Cert Business - Question 7 - 2020
Question 7
Indicate by placing a tick (✔) in the correct box, the pricing strategy to which each statement relates.
Statement
Rolex charges a high price for its watches to po... show full transcript
Worked Solution & Example Answer:Indicate by placing a tick (✔) in the correct box, the pricing strategy to which each statement relates - Leaving Cert Business - Question 7 - 2020
Step 1
Rolex charges a high price for its watches to portray an image of high quality.
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Answer
This statement relates to Premium Pricing as Rolex uses high prices to enhance its perceived quality.
Step 2
Lidl sells a litre of milk to consumers for €0.60 but purchased it from its suppliers for €0.65.
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Answer
This statement indicates Loss Leader pricing, where the product is sold below its purchase price to attract customers.
Step 3
Spotify offers students 50% off its premium package.
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Answer
This statement corresponds to Discriminatory Pricing, as it involves charging different prices to different customer segments.
Step 4
Apple charges a high price at the launch stage of new iPhones and reduces the price over time.
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Answer
This reflects Price Skimming, where a high initial price is set before gradually lowering it.
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