Price

Question 1

What is price?

Answer 1

The amount of money charged for a product or service

Question 2

Major pricing strategies are:

Answer 2

Value- based

Coast - based

Question 3

Customer value-based pricing (define)

Answer 3

Setting price based on buyers perception of value rather than sellers coast

Question 4

Good value pricing (define)

Answer 4

Perfect combination of good service and fair price

Question 5

Value added price (meaning)

Answer 5

Rather than cutting price, they add features and services to differentiate from competitors

Question 6

Coast based price (define)

Answer 6

Define price based on coast of producing, distributing and selling

Question 7

Two types of coast?

Answer 7

Fixed and variable

Question 8

Fixed coast (what is?)

Answer 8

Coast that do not vary with production or sales level

Question 9

Variable coast (meaning)

Answer 9

Varies directly with the level of production

Question 10

Cost-plus pricing (define)

Answer 10

Adding a standard markup to the coast of the product

Question 11

Break-even price / target return pricing

Answer 11

Company decides in a price that will make it even só costumers come back

Question 12

Competition-based pricing

Answer 12

Setting prices based on competitors

Question 13

Price elasticity (inelastic)

Answer 13

Demand doesn’t change with change of price = inelastic

Question 14

Price elasticity (elastic)

Answer 14

If the demand changes a lot of price changes = elastic

Question 15

New product pricing (2 types)

Answer 15

Skimming price = high inicial price to gain the biggest amount of profit, then Lower prices later

Market penetration pricing = low inicial price to penetrate the market quickly

Question 16

Five product mix pricing:

Answer 16

1. Product line pricing
2. Optional-product pricing
3. Captive-product pricing
4. By-product pricing
5. Product bundle pricing

Question 17

Optional pricing (define)

Answer 17

Pricing of options accessories along with main product

Question 18

Captive pricing (define)

Answer 18

Setting pricing for products that must be used with main product (blades for razor ex)

Question 19

By product pricing (define)

Answer 19

Setting a price for by-products to make the main product price more competitive

Question 20

Product bundle pricing (define) (combo)

Answer 20

Combine several products and offering the bundle at reduced price

Question 21

Price adjustment (7)

Answer 21

1 discount 
2 segmented pricing 
3 psychological price 
4 promotional pricing 
5 geographical pricing 
6 dynamic 
7 international

Question 22

3 major peixinho stratégies?

Answer 22

1. Customer value based price
2. Cost based price
3. Competition based price

Question 23

Internal factors that influence price decision (4)

Answer 23

1. Company’s overall marketing strategy
2. Objetives
3. marketing mix
4. Organizational considerations

Question 24

Key issue related to price changes

Answer 24

Customers reactions to it