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MKTG Exam 3 > To Know About Pricing > Flashcards

To Know About Pricing Flashcards

1
Q

The sum of everything the customer gives up for having and using the product

A

Price

Customer cost

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2
Q

Examples of price (customer cost)

A 
Time 
Inconvenience
Travel
Delivery
Installation 
Training 
Opportunity Cost
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3
Q

Pricing that focuses on customer perceptions of value

A

Value based pricing

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4
Q

Two pricing approaches

A

Cost based pricing

Competition based pricing

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5
Q

Calculate cost, add markup to get price

A

Cost-based pricing

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6
Q

Look at what competition is doing, copy it to get price

A

Competition based pricing

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7
Q

No demand above this price

A

Price ceiling

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8
Q

No profit below this price

A

Price floor

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9
Q

The cost of the product represents what kind of price

A

Price floor bc no profit if selling product below the cost of the product

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10
Q

Two products that represent market penetration

A

Dell

Walmart

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11
Q

New product innovation is related to what kind of pricing

A

Market skimming pricing

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12
Q

Examples of market skimming pricing

A

High tech

Luxury items

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13
Q

Price related to the value of the good is the

A

Maximum price (price ceiling) bc customers have no desire to buy product who’s price is higher than they value it at (no demand above it)

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14
Q

When customers are price sensitive, what kind of pricing is used

A

Market penetration

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15
Q

When production costs decrease with production, what kind of pricing is used

A

Market penetration pricing

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16
Q

When low price keeps out competition, what kind of pricing is used

A

Market penetration pricing

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17
Q

When the company can maintain a low price position (still making profit) this is

A

Market penetration pricing

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18
Q

Apple: As they go up in features, it goes up in pricing such as with the different iPhones and MacBooks; this is an example of

A

Product-line pricing

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19
Q

Colorful keyboard covers are sold for laptops and they aren’t necessary for the product (the laptop) to work

A

Optional-product pricing

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20
Q

Game consoles and the games and the controller; prescription lens and frames; razor and the cartridge are all examples of

A

Captive product pricing (you need to buy the accessories to work the product )

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21
Q

Discount for buying more; buy the whole thing and it’s a little cheaper than buying the individual parts is an example of what

A

Product bundle pricing

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22
Q

Bucket of Zoo Doo, scrap metal etc are examples of

A

By-product pricing (capitalizing o something that would have been a by-product or thrown away

23
Q

Buying ahead with cash and receiving a discount or there being an extra price to pay for paying with card and not cash is an example of

A

Cash discount pricing

24
Q

When the price is discounted because it’s good for you and good for me that is

A

Functional discount pricing

25
Q

When you buy more and get a discount this is

A

Quantity discount pricing

26
Q

When you get a discount for buying things after the season this is

A

Seasonal discount pricing

27
Q

Four types of segmented pricing

A

Customer-segment
product-form
Location
Time

28
Q

A McDonald’s value meal being more expensive at LAX airport is an example of

A

Location segmented pricing

29
Q

When delivery gets more expensive when you’re farther away, this is an example of

A

Geographical pricing (NOT SEGMENTED)

30
Q

This kind of pricing fluctuates based on supply and demand; for instance products on amazon, airplane tickets etc.

A

Dynamic pricing

31
Q

Promotion mix pricing strategies (5)

A 
Product line pricing 
Optional product pricing 
Captive product pricing 
By-product pricing 
Product bundle pricing
32
Q

Price adjustment strategies (6)

A 
Discount pricing 
Segmented pricing 
Psychological pricing 
Promotional pricing 
Geographical pricing 
Dynamic pricing
33
Q

A product that gets consumers into the store (it’s a frequent and inexpensive purchase)

A

Loss leader

34
Q

What kind of price adjustment strategies is used for loss leaders

A

Promotional pricing

35
Q

When you’re at the movies and a cheaper price is offered for kids or seniors this is an example of

A

Customer-segmented pricing

36
Q

The difference between 2D, 3D and IMAX is an example of

A

Product form segmented pricing

37
Q

The price of Movie tickets in Manhattan vs movie tickets in state college is an example of

A

Location segmented pricing

38
Q

Matinee is cheaper is an example of

A

Time segmented pricing

39
Q

A price ending in what number doesn’t help sales because it’s angular and jarring?

A

7

40
Q

Relative reference pricing of video game target and Best Buy vs. laptop at Best Buy and Office Depot is an example of

A

Psychological pricing

41
Q

Price ending in 9 is thought of as a

A

Bargain

42
Q

A price ending in 8 is thought of as a

A

Bigger bargain and soothing

43
Q

A price ending in 00 is thought of as

A

Higher quality

44
Q

Three things about value

A

Must define what is being sold
Financial value
Emotional value

45
Q

Cost saving and earnings opportunities are examples of

A

Financial value

46
Q

Status, safety and a sense of belonging are example of

A

Emotional value (maslows hierarchy)

McDonald sign commercial

47
Q

Public policy protects competitors from what two things

A

Price fixing

Predatory pricing

48
Q

Talking with competitors to set prices is

A

Price fixing

49
Q

Selling below cost with the intention of punishing a competitor or putting them out of business is

A

Predatory pricing

50
Q

Public policy protects consumers from what three things

A

Price discrimination
Price maintenance
Deceptive pricing

51
Q

Ensure same price to customers at given level of trade

A

Price discrimination

52
Q

Requiring dealers to charge s specified retail price

A

Price maintenance

53
Q

Seller stated price that may mislead customers

A

Deceptive pricing

MKTG Exam 3 (9 decks)

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