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in large volumes. Many supermarkets offer a range of products at economy
prices. Typically, these products will have simple packaging and a general
‘no frills’ approach.
Price skimming
Price skimming aims to exploit a commercial advantage by charging a
high price while there are few competitors. However, the high price attracts
new competitors and the price falls because of the increase in supply and in
competition.
22 Match the phrases 1-5 with explanations a-e.
1) gain the market share
2) no thrills
3) relatively
4) artificially
5) approach
a) not absolutely
b) not through a natural process
c) a method of dealing with a prob-
lem
d) increase the number of buyers
e) without decoration or accessories
23 You will listen to an interview about low-cost airlines’ pricing
strategies. Before you listen discuss in the group what can influence the
price of airplane tickets.
24 Listen to the interview. (You can read the words of Presenter at
the same time or read them before listening). Answer the questions.
P = Presenter
J = James Phillips
P: Now, if like me you’re already thinking about next year’s holidays but you
don’t want to spend too much money, you’ve probably already visited the
websites of some of the new budget airlines that have sprung up in the last
few years. It’s a relatively recently phenomenon but an extremely successful
one. I’m sure you’ve all heard of people getting flights to fabulous destina-
tions for as little as £10. It almost seems too good to be true. I’m joined in the
studio by James Phillips of consumer group ‘What?’ and I hope he’s going to
answer the big question – just how do they make it so cheap? James.
• Do all budget airline flights cost less than £10?
• When is the price the highest?
• When is the price lowest?
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