Pricing Strategy
Method for setting prices to achieve business objectives.
Formula
Cost-Plus Price = Unit Cost + Markup %
Real World
When Apple launched the iPhone at £999 using price skimming, it maximised revenue from early adopters before gradually reducing the price as newer models were released.
Exam Focus
Name the specific strategy and justify why it suits that business context — vague answers listing strategies without application will not reach the higher mark bands.
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