Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PHME MIDTERMS > M6 > Flashcards

M6 Flashcards

1
Q

value of the product determined by the producer

A

Price mix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

It is the amount of money charged for a product or service.

A

Pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

It is the sum of the values consumers exchange for the benefits of having or using the product or service.

A

Pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A part of the marketing mix that brings the revenues.

A

Pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

communicates the value positioning of the product

A

Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

perceived benefits - acquisition cost =

A

Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

used in government transactions in hospitals, industrial firms, and related health agencies

A

Bids or Quotations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

used by drug manufacturers when selling products to trade outlets

A

Catalogue or List price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

used by wholesalers and retailers when selling products to consumers or end-users

A

Retail price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

when selling price in bulk quantities

A

Wholesale price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

the cost of products inclusive of 10% VAT and discounts

A

Net price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

the costs of products inclusive of raw materials, labor, and overhead

A

Billing price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

the amount paid by manufacturers to trade outlets monthly for product displays either at the point-of-sale or preferential shelf spaces or floor display spaces

A

Rentals/allowance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Factors influencing price

A
  1. Price – quality relationship
  2. Product line pricing
  3. Explicability
  4. Competition
  5. Negotiating margins
  6. Effect on distributors and retailers
  7. Earning very high profits
  8. Charging very low prices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Customers use price as an indicator of quality, particularly for products where objective measurement of quality is not possible

A

Price – quality relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A company extends its product line rather than reduce price of its existing brand when a competitor launches a low price brand that threatens to eat into its market share,

A

Product line pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Ex. Branded vs. Generic drug

A

Price – quality relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Ex. Apple products

A

Product line pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The company should be able to justify the price it is charging, especially if it is on the higher side.

A

Explicability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Consumer product companies have to send cues to the customers about the high quality and the superiority of the product.

A

Explicability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Ex. A superior finish, fine aesthetics, or superior packaging

A

Explicability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

A company reduces its price to gain market share

A

Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A company should be able to anticipate reactions of competitors to its pricing policies and moves.

A

Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Ex. Entering dissimilar products serving the same need in a similar way – NSAIDs drugs

A

Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

allow price to fall from list price levels but still permit profitable transactions

A

Negotiating margins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

A customer may expect its supplier to reduce price, and in such situations, the price that the customer pays is different from the list price.

A

Negotiating margins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Ex. Discounts based on order size or type of payments

A

Negotiating margins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

When products are sold through intermediaries like retailers, the list price to customers must reflect the margins required by them.

A

Effect on distributors and retailers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

It is never wise to earn extraordinary profits, even if current circumstances allow the company to charge high prices.

A

Earning very high profits

30
Q

The company’s high profits lure competitors who are enticed by the possibility of making.

A

Earning very high profits

31
Q

It may not help a company’s cause if it charges low prices when its major competitors are charging much higher prices.

A

Charging very low prices

32
Q

If a company introduces very low prices, customers suspect its quality and do not buy the product in spite of the low price.

A

Charging very low prices

33
Q

Internal Factors (TED COS PBC M)

A

○ Top-level management
○ Elements of marketing mix
○ Degree of product differentiation
○ Costs
○ Objectives
○ Stage of product lifecycle
○ Product quality
○ Brand Image
○ Category of Class of Product
○ Market share

34
Q

External Factors (SEED CP BG)

A

○ Demand for the product
○ Competition
○ Price of raw materials and other inputs
○ Buyers behavior
○ Government rules and restrictions
○ Ethical consideration or code of conduct
○ Seasonal effect
○ Economic condition

35
Q

When is pricing a problem to drug companies?

A
  1. When a company sets a price for the first time
  2. When inevitable circumstances lead a company to consider initiating a price change
  3. When direct competitors initiate a price change
36
Q

Basic Pharmaceutical Pricing Policies

A

▷Differential Pricing
▷Competitive Pricing
▷Product-line Pricing
▷Psychological/ Image Pricing ▷Distribution-Based Pricing

37
Q

Set different prices in different markets due to local regulations

A

Variable pricing

38
Q

If the primary market covers fixed/ variable costs, enter the second market with a lower price.

A

Second market discounting

39
Q

Set initial prices high, then lower gradually

A

Skimming

40
Q

Lower prices at periodic intervals (e.g. seasonally)

A

Periodic discounting

41
Q

Lower prices unpredictably and infrequently

A

Random discounting

42
Q

Differential Pricing

A

▷Variable pricing
▷Second market discounting
▷Skimming
▷Periodic discounting
▷Random discounting

43
Q

Offer products priced at the same level with competition. Avoid price wars.

A

Competition-meeting pricing

44
Q

Offer prices lower than competitors to try to gain market share.

A

Competition-undercutting pricing

45
Q

Capitalize on competitive advantage (e.g. unique formulation to set high prices)

A

Price leadership

46
Q

Adjust prices according to the market leader’s pricing moves.

A

Following the leader pricing

47
Q

Offer initial prices below cost, planning to capitalize as experience curve rises

A

Penetration pricing

48
Q

Set initial prices low to eliminate competitors, then raise them.

A

Predatory pricing

49
Q

Set according to historic price of “reference” drug (e.g. the first NSAID)

A

Traditional pricing

50
Q

Adjust prices downward if inflation rises (lower purchasing power)

A

Inflationary pricing

51
Q

Competitive Pricing

A

▷Competition-meeting pricing
▷Competition-undercutting pricing
▷Price leadership
▷Following the leader pricing
▷Penetration pricing
▷Predatory pricing
▷Traditional pricing
▷Inflationary pricing

52
Q

Sacrificing an item’s price so that store traffic and, thus, total profit increase.

A

Total-profit pricing

53
Q

Price a basic unit low, which its necessary supplies high.

A

Captive pricing

54
Q

If the market leader, add a price premium on the preferred product.

A

Leader pricing

55
Q

Set prices according to customer perceived value.

A

Value pricing

56
Q

Offer an OTC priced low, planning to switch the customer to something higher.

A

Bait pricing

57
Q

Instead of a wide range, offer three product classes at $5, $20, and $100 per unit.

A

Price lining

58
Q

Offer discounts for buying a product package.

A

Price bundling

59
Q

Bundle products in large quantities and low prices (economies of scale)

A

Multiple-unit pricing

60
Q

Product-line Pricing

A

▷Total-profit pricing
▷Captive pricing
▷Leader pricing
▷Value pricing
▷Bait Pricing
▷Price lining
▷Price bundling
▷Multiple-unit pricing

61
Q

Offering low-priced generic next to expensive “reference-priced” original.

A

Reference pricing

62
Q

Odd prices indicate low price, while even prices indicate prestige

A

Odd and even pricing

63
Q

Set very high to match a luxury item’s prestigious image.

A

Prestige pricing

64
Q

Psychological/Image Pricing

A

▷Reference pricing
▷Odd and even pricing
▷Prestige pricing

65
Q

all-inclusive price up to a destination point

A

FOB pricing

66
Q

Price of a product delivered at the customer’s warehouse (e.g. hospital pharmacy

A

Delivered pricing

67
Q

Prices set according to regional zones (e.g. north, south, central).

A

Zone pricing

68
Q

Mail order pharmacies charge a uniform price across the country.

A

Uniform- delivered pricing

69
Q

A manufacturer sells to a wholesale in Paris, with a London delivery-based price.

A

Basing-point pricing

70
Q

Distribution-based Pricing

A

▷FOB pricing
▷Delivered pricing
▷Zone pricing
▷Uniform- delivered pricing
▷Basing-point pricing

71
Q

Main factors affecting price determination of product:

A
  1. Product cost
  2. The utility and demand
  3. Extent of competition in the market
  4. Government and legal regulations
  5. Pricing objectives
  6. Marketing methods used
72
Q

Issues in Price Management in Pharmaceutical Industry

A
  1. Price must give enough profit to the firm or drug outlet, which will keep invested capital and employed.
  2. Price should attract new capital to the industry under normal conditions.
  3. Increasing the quality without raising or reducing prices and without reducing the quality

PHME MIDTERMS (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions