11. Pricing Products: Pricing Strategies Flashcards

0
Q

Setting a low price for a new product to attract a large number of buyers and a large market share

A

Market-penetration pricing

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1
Q

Setting a high price for a new product to skim maximum revenues layer by later from the segments willing to pay the high price; the company makes fewer but more profitable sales

A

Market-skimming pricing (or price skimming)

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2
Q

Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features and competitors’ prices

A

Product line pricing

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3
Q

The pricing of optional or accessory products along with a main product

A

Optional-product pricing

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4
Q

Setting a price for products that must be used along with a main product, such as blades for razors and cartridges for printers

A

Captive-product pricing

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5
Q

Setting a price for by-products to make the main product’s price more competitive

A

By-product pricing

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6
Q

Combining several products and offering the bundle at a reduced price

A

Product bundle pricing

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7
Q
Discount and allowance pricing
Segmented pricing
Psychological pricing
Promotional pricing
Geographical pricing
Dynamic pricing
International pricing
A

Price-adjustment strategies

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8
Q

Adjusting their basic price to reward customers for certain responses such as early payment of bills, volume purchases and off-season buying

A

Discount and allowance pricing

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9
Q

A straight reduction in price on ourchases during a stated period if time

A

Discount

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10
Q

Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way

A

Allowance

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11
Q

Selling a product or service at two or more prices, where the difference in prices is not based in differences in costs

A

Segmented pricing

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12
Q

A pricing approach that considers the psychology if prices and not simply the economics; the price is used to say something about the product

A

Psychological pricing

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13
Q

Prices that buyers carry in their minds to and refer to when they look at a given product

A

Reference prices

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14
Q

Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales

A

Promotional pricing

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15
Q

Setting prices for customers located in different parts of the country or world

A

Geographical pricing

16
Q

A geographical pricing strategy I which goods are placed free on board a carrier and the customer pats the freight from the factory to the destination

A

FOB-origin pricing

17
Q

A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location

A

Uniform-delivered pricing

18
Q

A geographical pricing strategy in which the company sets up two or more zones

All customers within a zone pay the same total price; the more distant the zone the higher the price

A

Zone pricing

19
Q

A geographical pricing strategy in which the seller designates a city as a basing point and charges all customers the freight cost from that city to the customer

A

Basing-point pricing

20
Q

A geographical pricing strategy in which the seller absorbs all or part of the freight charges to get the desired business

A

Freight-absorption pricing

21
Q

Adjusting prices continually to meet the characteristics and needs of individual customers and situation

A

Dynamic pricing