Int. Mkt Ch. 9 Flashcards
Examines pricing from the perspective of what consumers are willing to pay rather than the cost of the item.
Profit- Based Pricing
Two concepts that are part of international pricing processes:
Balancing of short- and long-term goals
Consideration of emotional and situational factors
Three key elemts requires by the method of Bottom-of-the-Pyramid
- affordability,
- access (reaching people in their standard shopping places), and
- availability, or having the product on hand when the individual has cash and is ready to buy.
T/F: In oligopolistic markets, a set of major competitors experiences the temptation to set prices at uniform levels either overtly or covertly through collusion
TRUE
Involves the direct attempt by a major competitor to drive other companies out of business by setting prices unrealistically low
Predatory Pricing
The marketer promotes one price, yet due to hidden charges, add-ons, or higher prices for products with more than the bare minimum of features, the actual price is much higher.
Deceptive Pricing
The practice of selling goods below costs in another country or pricing a product in one country lower than the price of the product in another country
Dumping
One of the tools international marketers use to examine a brand’s image and market position relative to the competition
Perceptual Map
A common method employed to discover the relationships between **costs and price **
Break Even Analysis
The pricing that involves setting the product’s price based on fixed costs, variable costs, plus the desired profit margin for each item.
Cost-Plus Pricing
T/F: Cost-plus pricing can be employed in cases where costs are unknown or hard to predict, and when company leaders want to ensure a certain level of profit regardless of the costs incurred
True
What are the three Cost-Based Pricing market methos
- Break-Even
- Cost-Plus
- Markup
When ______ demand exists, consumers are not strongly affected by price.
Inelastic
T/F: Supply-based price pricing can be more precise and allows for more efficient price setting.
False (Demand-Base Pricing)
Highly ____ demand occurs when consumers are extremely price sensitive.
Elastic
Represents the attempt to recapture start-up costs as quickly as possible.
Skimming
__________ pricing occurs when the entrant charges the lowest price it can afford.
Penetration
