Common Pricing Strategies

Question 1

charging different prices to different buyers for the same quality and quantity of product

Answer 1

differential pricing

Question 2

final price established through buyer/seller bargaining

Answer 2

negotiated pricing

Question 3

one price for a primary target market and a different price for another market

Answer 3

secondary-market pricing (gray market)

Question 4

setting the price for new products is one of the most fundamental decisions in the marketing mix

Answer 4

new-product pricing

Question 5

charging the highest possible price that buyers who desire the product most will pay
(affects a lot of competitors)

Answer 5

price skimming

Question 6

setting the price below competing brands to penetrate a market and gain market share quickly

Answer 6

penetration pricing

Question 7

establishing and adjusting prices of MULTIPLE PRODUCTS within a product line
(maximize profits for an entire product line)

Answer 7

product-line pricing strategies

Question 8

basic product in a product line is priced low while required related items are priced high
Ex: razor & blades

Answer 8

captive pricing

Question 9

giving the highest quality products in a line the highest prices
Ex: Lebron nikes

Answer 9

premium pricing

Question 10

low pricing on one item in a line with the intention of selling higher priced items in line
cheap phone trying to sell upgrade

Answer 10

bait pricing

Question 11

limited number of prices for selected line of merchandise

-couple similar prices in each level

Answer 11

price lining

Question 12

positioning a moderately priced item next to a more expensive brand to make it seem lower in price
internal-buy it a lot so price is perceived
external-dont buy it a lot so no perceived price

Answer 12

reference price

Question 13

packaging complementary products to be sold at a signle price

Answer 13

bundle pricing

Question 14

packaging together two or more identical products to be sold at a single price

Answer 14

multiple-unit pricing

Question 15

setting a low price on product on a consistent basis

walmart

Answer 15

Everyday low price

Question 16

stocking well-known branded items at high prices in order to sell store brands at discounted prices

Answer 16

selling against the brand

Question 17

ending the price with certain numbers that influence buyers perceptions of the price

Answer 17

odd-even pricing

Question 18

pricing certain goods on the basis of tradition

Answer 18

customary pricing

Question 19

setting prices at an artificially high level to convey high quality

Answer 19

prestige pricing

Question 20

concerned about both price and quality of a prodct

Answer 20

value- conscious buyer

Question 21

strive to always pay low price

Answer 21

price-conscious buyer

Question 22

focus on products that signify prominence and status

Answer 22

prestige-sensitive buyer

Question 23

used by people with great skill or xp in the field or activity
-standard fee
-ethical responsibility to not overcharge customers
EX: doctors visit

Answer 23

professional pricing

Question 24

laws that prohibit wholesalers and retailers from selling below cost

Answer 24

unfair trade practice acts

Question 25

an agreement between two or more firms on the price they will charge for a product

Answer 25

price fixing