chapter 11 Flashcards
The money or other considerations (including other products and services)
exchanged for the ownership or use of a product or service.
price
The practice of exchanging products and services for other products and services rather than for money.
barter
The ratio of perceived benefits to price; or Value = (Perceived benefits ÷ Price).
value
The practice of
simultaneously increasing product and service benefits while maintaining or decreasing price.
value pricing
Setting prices a few dollars or cents under an even number.
odd-even pricing
The marketing of two or more products in a single package price.
bundle pricing
Adding a fixed percentage to the cost of all items in a specific product class.
standard markup pricing
Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.
cost-plus pricing
Setting an annual target of a specific dollar volume of profit.
target profit pricing
Setting a price to achieve a profit that is a specified percentage of the sales volume.
target return on sales pricing
Setting a price to achieve an annual target return on investment (ROl).
target return on investment pricing
Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.
customary pricing
Setting a market price for a product or product class based on a subjective feel for the competitors’ price or market price as the benchmark.
above-, at-, or below-market pricing
Deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention to it in hopes that they will buy other products with large markups as well.
loss-leader pricing
A graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.
demand curve
