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Subject P2: Advanced Management Accounting

8.3 A company which makes a number of products is considering a range of pricing
strategies.

Identify the different strategies described below. Options include:

Premium pricing Controlled pricing Price differentiation

Discount pricing Market skimming

Loss leader pricing Product bundling Market pricing

The GX watch will be priced significantly above the average market price for
similar watches because the GX brand is highly regarded. This is an example
of _________________.

The B5 phone will be priced high initially as the research and development
costs involved in making it need to be recovered. This is an example of
_________________.

The 4S alarm clock will be priced very low when it is introduced as the company
is keen to build market share. This is an example of _________________.

The FP GPS system will be sold to retailers for over $30 less per unit than the
price charged to consumers. This is an example of _________________.

The XB smart reader will be sold at a below cost price to encourage sales and
so stimulate demand for the XB smart reader plug ins which can be bought
separately. This is an example of _________________.

The QY radio is sold at a lower price than most of the competitors although it is
marketed as being of similar quality. This is an example of
_________________.

The price of the XG heart implant is regulated by the national medical board.
This is an example of _________________.

The CG movement monitor can be bought with the FG heart rate monitor and
the KG personal GPS for a single price. This is an example of
_________________.

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