Chapter 10 Flashcards
A pricing strategy in which a firm decides to price at some market average price in context with prices of competitors
Competitor Based Pricing
A pricing strategy in which a firm attempts to take into account the role of price as it reflects the bundle of benefits sought by the customer
Value Pricing
A pricing tactic in which a firm affords the marketing manager an opportunity to develop a rational pricing approach across a complete line of related items
Product line pricing
A pricing tactic of gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate
Captive pricing
A pricing tactic in which customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately
Price bundling
A pricing strategy in which a firm gives customers comparative prices when considering purchase of a product so they are not viewing a price in isolation from prices of other choices
Reference pricing
A pricing tactic that lends prestige to a product or brand by virtue of a price relatively higher than the competition
Prestige pricing
A pricing tactic in which the price marked on a good is what it typically sells for
One-price strategy
A pricing tactic in which customers are allowed or encouraged to haggle about prices
Variable pricing
A pricing tactic that entails relatively low, constant prices and minimal spending on promotional efforts
Everyday low pricing
A pricing strategy in which the retailer offers frequent discounts, primarily through sales promotions, to stated regular prices
High/low pricing
A pricing tactic in which individuals competitively bid against each other and the purchase goes to the highest bidder
Auction pricing
A pricing decision made by considering fixed costs and then demand forecasting to determine the price per unit
Target-return pricing
A pricing decision made by identifying all costs associated with an offering to come up with what the average cost of a single unit should be
Average-cost pricing
A percentage discount off invoice to elicit quicker payment by the customer
Cash discounts
An incentive to a channel member for performing some function in the channel that benefits the seller
Trade discounts
Discounts taken off an invoice price based on different levels of product purchased
Quantity discounts
Discounts that reward the purchaser for shifting part of the inventory storage function away from the manufacturer
Seasonal discounts
Sales promotions initiated by the manufacturer and carried out by the retailer, who is then compensated by the manufacturer
Promotional allowances
When the same delivery fee is charged to customers regardless of geographic location within a set area
Uniform delivered pricing
