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mark 1120 > ch 9 terms > Flashcards

ch 9 terms Flashcards

1
Q

criteria of pricing

A

above costs and below consumer value perception
equilibrium

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2
Q

define consumer value based pricing

A

assess customer value perception, target price to match

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3
Q

define value based pricing

A

customer needs and perceptions influence cost and product design choices

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4
Q

define value based pricing

A

customer needs and perceptions influence cost and product design choices

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5
Q

define good value pricing

A

right combo of quality and service at cheap price

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6
Q

what is EDLP

A

Every day low pricing

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7
Q

define high-low pricing

A

mostly high costs, sometimes crazy sales
eg. evry jewels

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8
Q

define value added pricing

A

add features to justify higher price and stand out from competitors

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9
Q

define competition based pricing

A

use competition as point of reference
set price based on our value vs theirs

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10
Q

define cost based pricing

A

design, determine costs, convince buyers to pay that amount

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11
Q

define cost-plus pricing

A

overhead costs + promo and distribution + markup to make profit

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12
Q

define break even pricing

A

just want to make back costs

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13
Q

break even pricing equation

A

fixed costs/(unit price - unit variable cost)

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14
Q

define market skimming price

A

high price at release and lower over time
ex. tech

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15
Q

define market penetrating pricing

A

low cost to attract big chunk of market share

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16
Q

define fixed costs

A

don’t change based on number of units produced/sold
rent

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17
Q

define variable costs

A

change depending on # of units produced
(labour, materials)

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18
Q

2 internal factors considered in pricing

A

overall marketing strat, objectives, mix
organizational considerations: pricing teams

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19
Q

external factors of pricing MIDE

A

market
impact on other parties
demand
economy

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20
Q

define pure competition market

A

so many producers of one good that no one makes an impact

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21
Q

define monopolistic market

A

many buyers and sellers all with different prices because they’re all unique

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22
Q

define oligopolistic market

A

handful of big sellers
ex. internet

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23
Q

define pure monopoly market

A

one seller aka price maker

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24
Q

things to consider in market external factor

A

resellers reaction
govt influences
social concerns

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25
Q

what to consider in economy external factor

A

boom, recession, inflation, interest rate

26
Q

5 product mix pricing starts

A

product line
optional product
captive/two-part
by-product
product bundle

27
Q

define product line pricing

A

sells diff products in one line for different prices

28
Q

define optional product pricing

A

added price for extra features on top of base model
ex. cars

29
Q

define captive/two-part pricing

A

setting price for product that must be used with main one
ex. razors and blades

30
Q

define by product pricing

A

sell by products/waste of production for additional profit
ex. fertilizer

31
Q

define product bundle pricing

A

buy many things together for reduced rate per unit
ex. fast food combos

32
Q

define quantity discount

A

large volume discount

33
Q

define functional/trade discount

A

trade channel members get discounts

34
Q

define seasonal discount

A

price reduction out of season

35
Q

define trade in allowance

A

discount for trading old product in for new one

36
Q

define promo allowance

A

rewards for dealers participating in add and sale support programs

37
Q

define customer segment pricing

A

ex. same good cheaper for students and seniors

38
Q

define product form pricing.

A

ex. economy vs business class flight ticket

39
Q

define location based pricing

A

ex. concert tickets

40
Q

define time based pricing

A

diff prices based on time of day/season
ex. bridge toll

41
Q

define psychological pricing

A

higher price perceived to be high quality

42
Q

define reference pricing

A

buyer carries in back of mind as reference

43
Q

what are cash rebates

A

give some of buyers money back
ex. low interest financing, free maintenance, long warranty

44
Q

define FOB origin pricing

A

make buyers further away pay more for shipping

45
Q

define uniform-delivered pricing

A

same shipping fee for all

46
Q

define zone pricing

A

zone A pays one price
zone B pays another

47
Q

define basing point pricing

A

decide to calculate shipping cost as if all goods come from one warehouse

48
Q

define freights absorption price

A

seller absorbs shipping costs

49
Q

define dynamic pricing

A

constant change based on need and situation
ex. Uber

50
Q

define international pricing

A

company sells in many countries and must match market conditions in each place

51
Q

what initiates price cut

A

excess capacity
falling demand
trying to dominate market

52
Q

what initiates price increase

A

higher costs
inflation

53
Q

define fighter brand

A

we launch low price firm to compete with competition’s price change

54
Q

define price fixing

A

illegal
law that sellers can’t commiserate with competitors for one united price

55
Q

define bid rigging

A

competitors collude to decide winner of bid
illegal

56
Q

define predatory pricing

A

sell at a loss to punish competitor or push out of business
illegal

57
Q

define price discrimination

A

manufacturer changing price for different firms illegal

58
Q

define functional discount

A

larger discount to wholesaler than retailer.
illegal in canada

59
Q

define retail price maintenance

A

manufacturer requires dealer to charge certain price
illegal

60
Q

define deceptive pricing

A

bait and switch customers with low quantity of severely discounted goods to make them buy higher one
illegal

mark 1120 (13 decks)

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