Chapter Five Flashcards
what are the 7 steps of product Design?
- swat analysis
- idea generation
- screening and evaluation
- business analysis
- development
- test marketing
- commercialization
Consumer perception?
Many consumers believe that the higher the price, the better the quality of an item.
Prestige pricing
pricing based on consumer perception
Odd-even pricing
pricing goods with either an odd number or even number to match a product’s image
Target pricing
pricing goods according to what the customer is willing to pay
Demand
high demand = limited supply and price high
newness of product
price high = recover the costs
price low = create immediate demand for product
Competition
- compete on price, they lower their price to draw more customers away
- not compete
- use nonprice competition; competition between business based on quality services and relationships
Price Lining?
Selling all goof in a product line at specific price points.
Bundle Pricing?
Selling several items as a package for a set price
Loss Leader Pricing
Pricing an item at cost or below to draw customers into the store
Yield - management Pricing
Pricing items at different prices to maximize revenue when limited capacity is involved
