Match the items on the right to the items on the left.

What are the factors that affect the end price of a product?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does a product’s price need to provide in the first place?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does “cost based pricing” strategy involve?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does “penetration price” strategy involve?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does “penetration price” strategy encourage consumers to do?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does “price skimming” strategy involve?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
How does “price skimming” strategy help a business?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does “cost based pricing” strategy focus on?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
Why was the price for NIVEA VISAGE Young slightly higher on re-launch?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
Why was it important for NIVEA to offer value for money?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
Why is NIVEA the price leader and what does this mean for the company?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What does it mean for NIVEA to be the price leader?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.
What are the product life cycle stages?	??? It sets the price level that competitors will follow or undercut. On the product, not on the consumer. Because of new formulations, packaging and extended product range To gain maximum revenue before a competitor’s product reaches the market. The costs of production or the need to maximise profits or sales. It is one of the leading skin care ranges in that market segment. An initial high price for a unique product. Value for money in the market to attract consumers to buy. To develop a habit of buying. It can either simply cover costs or include an element of profit. Launch, growth, maturity, saturation, decline, and withdrawal. An initial low price to ensure a high volume of purchases and win market share. The target market was both teenage girls and mums buying the product for their daughters.