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Marketing > Chapter 14 > Flashcards

Chapter 14 Flashcards

1
Q

Skimming Pricing

A

Setting the highest initial price that customers who really desire the product are willing to pay when introducing a new/innovative product

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2
Q

Penetration Pricing

A

Setting a low initial price on a new product to appeal immediately to the mass market

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3
Q

Prestige Pricing

A

Setting a high price so that quality- or status- conscious customers will be attracted to the product and buy it

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4
Q

Price Lining

A

Setting the price of a line of products at a number of different specific pricing levels

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5
Q

Odd- Even Pricing

A

Setting prices a few dollars or cents under an even number

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6
Q

Target Pricing

A

Consists of (1) estimating the price that would be willing to pay f, (2) working backward through markups taken by retailers, and then (3) adjusting the composition and features to achieve the target price

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7
Q

Bundle Pricing

A

Involves the marketing of two or more products in a single package price

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8
Q

Yield Management Pricing

A

Involves the charging of different prices to maximize revenue for a set amount of capacity at any given time

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9
Q

Standard Markup Pricing

A

Involves adding a fixed percentage to the cost of all items in a specific product class

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10
Q

Cost- Plus Pricing

A

Involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price

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11
Q

Target Profit Pricing

A

Involves setting an annual target of a specific dollar volume of profit

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12
Q

Target Return-on-Sales Pricing

A

Involves setting a price to achieve a profit that is a specified percentage of the sales volume

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13
Q

Target Return-on-Investment Pricing

A

Involves setting a price to achieve an annual target return-on-investment (ROI)

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14
Q

Customary Pricing

A

Involves setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors

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15
Q

Above-, At-, or Below-Market Pricing

A

Involves 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

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16
Q

Loss-Leader Pricing

A

Involves deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products with large markups as well

17
Q

Fixed-Price Policy

A

Involves setting one price for all buyers of a product or service. Also called a one-price policy

18
Q

Dynamic Pricing Policy

A

Involves setting different prices for products and services in real time in response to supply and demand conditions. Also called a flexible price policy

19
Q

Product-Line Pricing

A

Involves the setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item

20
Q

Price War

A

Involves successive price cutting by competitors to increase or maintain their unit sales or market share

21
Q

Quantity Discounts

A

Reductions in unit costs for a larger order

22
Q

Promotional Allowances

A

Cash payments or extra amount of “free goods” awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product

23
Q

Everyday Low Pricing (EDLP)

A

The practice of replacing promotional allowances with lower manufacturer list prices

24
Q

Price Fixing

A

Involves a conspiracy among firms to set prices for a product

25
Q

Price Discrimination

A

The practice of charging different prices to different buyers for products like grade and quality

26
Q

Predatory Pricing

A

The practice of charging a very low price for a product with the intent of driving competitors out of business

Marketing (16 decks)

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