value and pricing

Question 1

define penetration pricing

Answer 1

low initially to fend off competitor, then slowly increase

Question 2

define price skimming

Answer 2

start with high price, then lower

Question 3

best strategy for new products

Answer 3

penetration or skimming

Question 4

Competitor based pricing

Answer 4

slightly above competitors

Question 5

Value pricing

Answer 5

reflection of overall value for money that customer is paying for. High price = high quality

Question 6

captive pricing

Answer 6

when accessory is necessary for core product

Question 7

price bundling

Answer 7

cheaper when product bought together

Question 8

reference pricing

Answer 8

based off of old product, cheaper product placed next to more expensive

Question 9

decoy pricing

Answer 9

used to trick you

Question 10

Variable pricing

Answer 10

Allow to negotiate price

Question 11

define intensive distribution

Answer 11

low price, impulse goods

Question 12

define elective distribution

Answer 12

mid range, distributor has similar values

Question 13

Exclusive distribution:

Answer 13

prestige, premium product, scarcity ques, (not sold everywhere/limited)

Question 14

push strategy

Answer 14

pushing your product/ brand in front of people ie ads

Question 15

pull strategy

Answer 15

naturally pull customers to brand through creating demand