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  • Welcome to the Investors Trading Academy talking glossary of financial terms and events.

  • Our word of the day isDrip PricingDrip pricing is where a headline price is

  • advertised at the beginning of an online purchasing process and additional fees and charges which

  • may be unavoidable are then incrementally disclosed ordripped’. This can result

  • in paying a higher price than the advertised price or spending more than you realize.

  • Drip pricing is frequently associated with the hospitality industry. Airlines may show

  • the price of having a seat on a plane, but may exclude baggage fees, seating fees, taxes,

  • and other costs that consumers associate with being part of the typical travel experience.

  • Hotels may show room pricing that does not include local taxes or resort fees, or may

  • not include the cost of services such as access to the gym or pool.

  • Companies use drip pricing for products that may face heavy price competition. This is

  • because consumers are most likely to shop around for the best price for these types

  • of items. This creates an incentive for companies to try to show the lowest price possible,

  • even if the price that they show is not what the consumer will ultimately pay. Companies

  • may utilize this pricing approach in order to entice a customer into starting the purchase

  • process, at which point the customer may not want to restart his or her search.

Welcome to the Investors Trading Academy talking glossary of financial terms and events.

Subtitles and vocabulary

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B1 pricing drip price advertised customer baggage

What is Drip Pricing?

  • 613 39
    richardwang posted on 2015/09/25
Video vocabulary