Advantages and Disadvantages of different forms of price strategy Link the following advantages and disadvantages to the different forms of price leadership Simple and quick High prices Misestimates May allow Applies to consumer associated with of clasticity cconomics of scale perceptions so Can be accused of unfair high may lead to to be gained applicable in many business practices quality enhance lower markets d brand image revenue Leads to high sales High prices may lead some and increased Cost-plus pricing consumers to switch to other market share whilst products policy continued Price leadership Guarantees all costs are Ignores competitors covered pricing so may lose Predatory pricing Will increase revenue of frequently sales Price skimming purchased ancillary products High initial revenue allows more rapid Time based methods benefit payback of R&D costs Psychological both producer & consumer etc. pricing Ignores market needs/customer value when Numbers like 199.99 Loss leader setting price inconvenient for industries that tend to Customers might decide use whole numbers like Penetration pricing quality is low transport Only suitable for price Price discrimination sensitive markets. May encourage Very slight price reduction can Sales maybe lost when prices are put up switching In to brand lead to large sales increases afterwards