Brainscape's Knowledge GenomeTM

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


See full index

Year 1 - Introduction to Marketing > week 22 - pricing > Flashcards

week 22 - pricing Flashcards

1
Q

price

A

money charged for product or service

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

why pricing importnat

A

only elementin mking mix directly geenrate reveneu

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

pricing plays key roleincreating and capturing

A

custoemr value

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

actual price in not equal to

A

perceievd

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

how does pricing link to overlal strategy

A

acts as communicator to customer

own prices v competitor prices

help w posoition your offering in a way consumer will fins approipriage

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

unless we aree luxury products ow do ew want our price to be percieved

A

cheaper than the actual price

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

what is aspirational price demand

A

as price goes up quantity increases too

e.g sneaker collectors , jewellrey , house s

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

how do we price product

A

start w min to produce product , istribute and promote

then goes to max , the extnet o dcustomers wilingness to pay

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

diff mkts have diff

A

maxes

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

waht are the 3 ways we can set price

A

cost

customer vlaue

competition

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

cost based pricing relates to what concept

A

production/selling

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

value base dpricing relates to what cnept

A

marketing concept

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

competitor based pricnig rlates to

A

market based approach

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

which generic pricing has got higher threshold of willingness to pay

A

value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is cost based pricing and wahat is siles/most popular or

A

sell price based on costs of producing , selling and fair return for company’s effort and risk

cost plus pricing

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

adv of csot based pricing -3

A

simple to calculate

more certainty about cost than about value/demand

no adjustments to demand changes are needed

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

disadvantage of cost based pricing 5

A

fails to consider

target market
demand
competition
product life cycle - as we can charge based on this
product’s image

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

what is customer value based pricing

A

doing mkt research and audience research

capturing requiremants and value added

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

what are teh factors we consider in the customer’s value assessment

A

functinoal beenfis

social benefits

financial aspeccts

self expresive benefits

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

what a re the approaches to custoemr calue based pricnig 2

A

good value

value added

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

what is good value pricing

A

offering right combo of quality and good serivce at a fair price

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

what is value added pricing

A

attaching value added features and services to differntiate a company’s offers and charge higher prices

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

whats competitoor abased pricing

A

setting prices based on competitors stratefies , prices , csots and market offerings

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

what are the optinos w copm based pricing q

A

price lowe- cost leadership
price higher - differentiatino strat
price same - pricce matching

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

q to ask when doing competitor based pricing

A

percieved customer value of firm offerings v copmetitors offerings

current pricing strategis of competitiors and how strong are current competitors

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

btu whats wrong w competitor based pricing

A

cmop price may not affect true customer value

price could ignore production costs

danger of price wars - not viable forsmoall ppplayer

27
Q

why may a small business not be able to compete w compb base dpricni

A

costs higher , e.g small bakeer dont got established supply chains unlike morrisons

xso charing samemena dont got money to cover costs / reinvest in busines

28
Q

whats negative of cost base compared to customer value based pricing

A

dont find out what customers value so could be overxharging and if elastic this lower price may iuncrerase revenue which busness is missing out on

whereas capturing consumer value goives a better die as you can structure cost and pricign appopriatley

29
Q

whats good about higher price - int erms of positinoinf

A

can position yourself as premium

30
Q

what are the 7 pricing strateies

A

premium
freemium
penetration
skimming
product line
budnle
captive product pricing

31
Q

premium pricing what goods is it to do with , what is it part of and what does it impact

A

luxury

higher price is part of branding and positioning

price impacts branding

32
Q

freemium meaning

A

free product you can use extra feature to pay or it

33
Q

what is penetration

A

low price for new product to attract large number of buyers and mkt share

34
Q

in price penetration what musyt the makret be

A

highly price sensitive

35
Q

in price penettration teh low price myst helpp

A

keep cmopetition out

36
Q

when is mtkpenetration even more importnt e..g working conditions

A

mkt you unfmailiar w and established brands

must be highyl price sensitive or else why would customers switch

37
Q

what is price skimming

A

price start high redues progressiveley

38
Q

price skimming is oten related to what type of costs

A

high r and d ocsts

39
Q

what must support high pric ein price penetration

A

quality and imahe

40
Q

what is product loine pricing q

A

get poduct line w every upgrade the price incereases

41
Q

what is bundle pricing

A

got two products and just a get a more competitive price

42
Q

wheat ansoff amtrix would we use bundle priing for

A

penetratino

as we sellingn same things to customers just another way to repackage and offer a variety

43
Q

captive product

A

one main product underpriced them complementary products relativley overpriced

idea is cant use main w/o complementary hence lower price and looks more appealing

e.g printers + ink

44
Q

what are the two types - pay what you want

A

pick your price

name your price

45
Q

what is pick your price

A

got options to choose from the seller

46
Q

what is name your price

A

seller not obliged to set your price - you can pick price that you want

47
Q

what is pay what you watn

A

free to use

48
Q

what are the two types of segmented pricing

A

customer segment pricing

product form pricing

49
Q

customer sement pricing

A

segent based on dif customers ee..g student dals ,

50
Q

what is product form pricing

A

offering comparable product in terms of cost for different pricepoints e.g. airline

bs , econ, first class

51
Q

what’s key about the difff between first class , econ

A

not much but consumer perception of the differnce is huge

52
Q

what are the unethical (and often illegal ) pricing strategies

A

price discrimination

retail price maintenance

deceptive pricing

53
Q

what is price discrimnation

A

offering same quality products to two diff price points

54
Q

retail price maintenance

A

retailers set price manufacturers will try control price

when thtey can 0only guide not tell retailers to price

55
Q

what os deceptive pricing

A

raise the price b4 black friday to make it look like a deal

56
Q

psychology of pricing is about

A

price quality relationship

57
Q

psychology of pricing

A

postiive not storng xorrelation between perceived and objective price qualityu relation

perception depends on producty type

consumers held more accurat price qualit perceptinos for non durable products than durable products e..g fast moving consumer goods

58
Q

anchor pricing

A

price piint serves as refernce , esp when we didnt know what it was before

anchor price point is highest one and first one we see - + makes the other ones look cheaper

59
Q

what kind of good does anchor pricing use

A

popular luxury good / when we don’t have price quality baseline

show expensive item first so everything also looks cheaper

60
Q

what is charm pricing

A

end w 99p

but w quick perceptions brains round up to 1st number

so it looks like the 1st number

61
Q

odd even pricing meaning

A

odd - cheaper and better dea,
even - more luxury
whole - luxury and more established

62
Q

decoy item

A

one item don’t want you to buy and exists to guide your decision making

e.g. medium fries when compared to large looks like a bragain

63
Q

what is centre stage pricing

A

go for middle price as don’t like stuff that is too high or too low

they want you to buy the middle thing

works well in realtil top shelf expensive low shelf cheapest middle - mmiddle pruice point

Year 1 - Introduction to Marketing (15 decks)

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