Lesson Intention
To introduce various pricing methods and strategies.
To help students understand the importance of balanced pricing.
To provide engaging activities for students to apply their knowledge of pricing strategies in the real-world scenario.
Lesson Content
Introduction to pricing and its role in business
Balanced pricing and its importance.
Overview of pricing methods: Value-based pricing, Cost-based Pricing, Competition-based pricing
Pricing Strategies: Skimming, Loss-Leaders, Price Points, and Penetration.
Links to Video
Activity Instructions
In groups, specify pricing strategy (Skimming, Loss, Price-Points or Penetration).
Research an assigned strategy and prepare a short presentation outlining the Strategy's essential features, advantages, and disadvantages.
After the Strategy, discuss the various pricing strategies and suitability in different business contexts.
Choice/Differentiation
Students can prepare their presentations in different formats, such as Chromebooks, video or an interactive activity.
Additional resources will be provided to students who may need assistance understanding the price strategies.
Activity Task
Please go to Subpage under Lesson 1 for Paired Activity Task.
Suggested Reading
Business Studies in Action, pp 227-235.
Review Questions:
Outline three main pricing methods.
Outline how market-based pricing is determined.
Evaluate whether you agree with statement 'You get what you pay for'. Provide examples to justify your answer.