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Marketing > Deck 10 - Pricing - Lecture 11 > Flashcards

Deck 10 - Pricing - Lecture 11 Flashcards

1
Q

what is price

A

price is a measure of value to both buyers and sellers

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2
Q

what is pricing

A

pricing is the management of price

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3
Q

what does price seeking mean

A

higher price = higher quality

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4
Q

what does price averse mean

A

lower price = greater value

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5
Q

what does cost represent

A

cost represents the total money, time and resources sacrificed to produce or acquire an offering

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6
Q

is the cost for the buyer just the price

A

the cost for the buyer can be greater than price (time spent researching etc)

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7
Q

what types of cost need to be factored in for the seller when pricing a product

A

fixed, variable and indirect costs

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8
Q

what does the product life cycle diagram look like

A

x time
y sales
starts convex in introduction then turns concave with point of inflection in growth stage then it peaks in maturity and goes down in decline

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9
Q

what are some different objectives a company can have

A

corporate objectives, marketing objectives, pricing objectives

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10
Q

what are the aims of pricing

A

profitability,
market share,
long term prosperity,
positioning

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11
Q

what are the different pricing strategies *

A

premium pricing,
penetration pricing,
economy pricing,
price skimming

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12
Q

what is premium pricing

A

price set to indicate distinctiveness of offering (higher quality)

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13
Q

what is penetration pricing

A

price set low relative to competition to gain market share

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14
Q

what is economy pricing

A

price set at bare minimum to attract price-sensitive customers

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15
Q

what is price skimming

A

price set high initially then lowered in steps

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16
Q

example of price skimming

A

video games

price set high initially then lowered in steps

17
Q

what is price skimming the opposite of

A 
price penetration (price set low relative to competition to gain market share),
skimming (price set high initially then lowered in steps )
18
Q

what is price penetration the opposite of

A 
price skimming (price set high initially then lowered in steps),
price penetration (price set low relative to competition to gain market share)
19
Q

what are the pricing approaches *

A

cost-oriented approach,
demand-oriented approach,
competitor-oriented approach,
value-oriented approach

20
Q

the pricing approaches (cost-oriented approach, demand-oriented approach, competitor-oriented approach, value-oriented approach) are not ________

A

distinctive

21
Q

explain cost-oriented approach

A

cost of production + % markup = price

22
Q

explain demand-oriented approach

A

prices set according to how much customers will pay

23
Q

explain competitor-oriented approach

A

prices set based on competitors’ prices

24
Q

explain value-oriented approach

A

prices set on basis of buyers’ perceptions of specific product-service attribute values rather than on costs or competitors’ prices

25
Q

what is loss-leader pricing

A

pricing strategy where a good is sold at below its market price in order to stimulate profit through sale of other goods

26
Q

example of loss-leader pricing

A

draws you into shop and shop accepts loss on product such as milk

27
Q

what is promotional pricing

A

encourage you to try something new

28
Q

example of segmentation pricing

A

classes on trains and planes

29
Q

what is negotiated pricing dependent on

A

bargaining power

30
Q

what is relationship pricing used to do

A

develop a longer relationship

31
Q

what are B2B buyers and sellers seeking to do

A

B2B buyers and sellers are seeking to resolve mutual needs to maximise profits

32
Q

what are B2B marketing relationships compared to B2C

A

B2B marketing relationships between suppliers and organisational buyers are close, long term and formal compared to B2C

33
Q

what are ethical issues in pricing

A 
price fixing,
predatory pricing,
deceptive pricing,
product dumping,
price gouging
34
Q

what is deceptive pricing

A

retailers use deceptive means to trick the customers into thinking they are paying a lower price than what they actually are

35
Q

what is price gouging

A

price far higher than cost

36
Q

good example of price gouging

A

pharmaceutical industry

37
Q

what is pricing the only one of the 4ps to do

A

only one of the 4ps that creates revenue

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