LESSON 4: MARKETING MIX: PRICE Flashcards
What is the only element in the marketing mix that generates revenue?
Price
What is Cost-Plus Pricing?
The simplest pricing method focusing on total cost incurred in producing a product or service and adding a standard markup.
What is another name for Cost-Plus Pricing?
Mark-up pricing
What does Competition-Based Pricing focus on?
Prices currently existing in the market.
What is Customer Value-Based Pricing based on?
The buyer’s perception.
Name three examples of Customer Value-Based Pricing products.
- iPhones
- Electric Cars
- Luxury Brands
What is Buyer-Seller Interactivity in pricing issues?
Prices are negotiated during the buyer and seller interaction.
Give an example of Buyer-Seller Interactivity.
Cars for Sale
What is Price Discrimination?
When a product is sold at different prices to different consumers.
Name three examples of Price Discrimination.
- Adult
- Child
- PWD
What does Price Format involve?
How a price is shown to the market.
Give an example of Price Format.
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What is Opportunistic Pricing?
Charging customers unreasonably high prices when goods or services are in short supply.
What is the purpose of RA 7394?
Protects the rights of consumers from unfair pricing.
Fill in the blank: The pricing method that focuses on total cost and adds a markup is called _______.
Cost-Plus Pricing
True or False: Competition-Based Pricing ignores current market prices.
False
True or False: Price Discrimination can apply to different consumer categories such as adults and children.
True
