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MM > Pricing > Flashcards

Pricing Flashcards

1
Q

I strategy used to estimate the value that a producer would receive in exchange for their goods and services.

A

Pricing

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2
Q

The decision making method that results in a value being assigned to a good or service.

A

Pricing

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3
Q

The initial goals and guiding principles that the company establishes to direct how it prices a good or service

A

Pricing objectives

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4
Q

All commercial enterprises need to generate long term profits.

A
  1. Profit
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5
Q

Any company’s primary pricing goal is to determine an optimal price that will enable the product or service remain in demand

A
  1. Survival
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6
Q

Many businesses based the cost of their products and services on how well clients perceive their quality

A
  1. Maintaining product quality
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7
Q

In an effort to gain a larger portion of the market , several businesses set low pricing for their product

A
  1. Increasing market share
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8
Q

Profit demand sales, just as a company’s long term survival depends on it.

A
  1. Maximizing sales and profits
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9
Q

Pricing significantly affects how customers view a company . Prices should ideally be higher to convey at status and luxury and lower to convey value

A
  1. Changing the brand image
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10
Q

Uses the price a company sets to attract customer.

A
  1. Pricing based on competitors
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11
Q

Because businesses is still need to turn a profit in order to stay in operation, all pricing is profit driven.

A
  1. Pricing based on profits
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12
Q

Design to gain traction in a crowded market, typically by providing a cheap starting price

A
  1. Pricing for market penetration
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13
Q

The complete opposite of a market penetration-based one

A
  1. Price skimming
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14
Q

Entails charging what rival businesses do for comparable goods and services.

A

Simple pricing

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15
Q

Determine by the uniqueness for a good or service and the price that consumers are ready to pay.

A

Complex pricing.

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16
Q

Sometimes, how buyers perceive a products cost is more important than its actual cost.

A
  1. Psychology of pricing.
17
Q

When clients are more likely to just buy one item at a time than when they would otherwise, bundled pricing can assist both average sales and total earnings.

A
  1. Product bundling
18
Q

New businesses face the challenge of having to meet their fixed cost with fewer sales while also locking the buying power to lower their variable caused by securing volume discounts from their suppliers.

A
  1. Economies of scale
18
Q

When choosing a price for a product, cost must be one of the key factors to consider.

A
  1. Product cost
18
Q

Customers do not really care about products cost; they are ready to pay what they believe it is worth.

A
  1. Perceived value of goods
18
Q

While monopolies have nearly unrestricted ability to raise prices, open and free markets are extremely sensitive to price changes.

A
  1. Competition
19
Q

Pricing decisions are influenced by the state of the market.

A
  1. Prices of competitors
20
Q

The pricing of the product is influenced by its features as well. Different features are added to the goods, such as quantity, size, color or alternative usage in order to draw in customers

A
  1. Product differentiation
21
Q

Because of the reputation of the company as well as differences in quality, different producers products have different prices.

A
  1. Position in the industry
22
Q

Typically cannot or should not be fixed below its value, also influenced by price.

A
  1. Product cost
23
Q

The company may have a number of goals, such as obtaining a suitable rate of return, cornering the market, and maintaining control over sales and revenue.

A
  1. Business objectives
24
Q

If a product is purchased more frequently by consumers, lower pricing should be set in order to have a narrow profit margin.

A
  1. Consumer buying behavior
25
Q

A procedure that links the pricing goals to variables outside of the business

A

Pricing strategy

25
Q

Market analysis is frequently used to determine how much value consumers place on a products characteristics and advantages.

A
  1. Marketability
25
Q

Profitability of the company’s impacted by pricing. The higher prices of a company can normally convince people to pay, the bigger its potential for profit.

A
  1. Profit potential
26
Q

Pricing should be in line with the overarching business objectives. It must decide most crucially weather to set prices with a short term or long term emphasis.

A
  1. Time and goal oriented.
27
Q

When a company sets up products pricing, it is critical to consider the advantages the product delivers as well as the entire value proposition.

A
  1. Value proposition

MM (2 decks)

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