MKT Final - Chapter 14

Arriving At The Final Price
 
Created Dec 15, 2011
by scott.autencio
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Side ASide B
Step Four in the Pricing Process
Select and Approximate Price Level
Skimming Pricing
- setting the highest initial price that customers really desiring the product are willing...
Penetration Pricing
- setting a low initial price on a new product immediately to the mass market- people are price...
Prestige Pricing
- setting a high price so that quality or status conscious consumers will be attracted to the...
Price Lining
- firm that is selling not just a single product but a line of products may price them at a...
Odd-even Pricing
- setting prices a few dollars or cents under an even number (19.99)
Target Pricing
- results in the manufacturer deliberately adjusting the composition and features of a product...
Bundle Pricing
- marketing 2 or more products in a single package price- (XBox comes with game and two controllers...
Yield Management Pricing
- the charging of different prices to maximize revenue for a set amount of capacity at any...
Standard Markup Pricing
-entails adding a fixed percentage to the cost of all items in a specific product class
Cost-Plus Pricing
- involves summing the total unit cost of providing a product or service and adding a specific...
Experience Curve Pricing
- based on the learning effect, which holds that the unit cost of many products and services...
Loss Leader Pricing
- not to increase sales, but to attract customers in hopes they will buy other products as...
Step Five in the Pricing Process
Set the List or Quoted Price:- Fixed vs. Flexible Price Policy- Choosing a Price Policy
One-price Policy
- (a.k.a. fixed pricing) setting one price for all buyers of a product or service
Flexible Pricing Policy
- (a.k.a. dynamic pricing) setting different price for products and services depending on individual...
Product Line Pricing
- setting the prices for all items in a product line- determines:     ...
Price War
- involves successive price cutting by competitors to increase or maintain their unit sales...
Step Six in the Pricing Process
Make Special Adjustments to the list or quoted price- discounts, allowances
Discounts
- reductions from the list price that a seller gives a buyer as reward for some activity of...
Quantity Discounts
- when a customer buys more they get a discount for buying large amounts
Seasonal Discounts
- encourages buyers to stock inventory earlier than their normal demand would require
Cash Discounts
- if you pay with cash and quickly, a discount will be received
Allowances
- reductions from list or quoted prices to buyers for performing some activities(trade-in,...
Trade-in Allowances
- price reduction given when a used product is part of the payment of new product
Promotional Allowances
- undertaking certain advertising or selling activities to promote a product
Everyday Low Pricing
- practice of replacing promotional allowances with lower manufacturer list price


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