MKT Final - Chapter 14

27 cards

Arriving at the Final Price


 
  
Created Dec 15, 2011
by
scott.autencio

 

 
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1
Step Four in the Pricing Process
 
Select and Approximate Price Level
2
Skimming Pricing
 
- setting the highest initial price that customers really desiring the product are willing...
3
Penetration Pricing
 
- setting a low initial price on a new product immediately to the mass market
- people are...
4
Prestige Pricing
 
- setting a high price so that quality or status conscious consumers will be attracted to the...
5
Price Lining
 
- firm that is selling not just a single product but a line of products may price them at a...
6
Odd-even Pricing
 
- setting prices a few dollars or cents under an even number (19.99)
7
Target Pricing
 
- results in the manufacturer deliberately adjusting the composition and features of a product...
8
Bundle Pricing
 
- marketing 2 or more products in a single package price
- (XBox comes with game and two...
9
Yield Management Pricing
 
- the charging of different prices to maximize revenue for a set amount of capacity at any...
10
Standard Markup Pricing
 
-entails adding a fixed percentage to the cost of all items in a specific product class
11
Cost-Plus Pricing
 
- involves summing the total unit cost of providing a product or service and adding a specific...
12
Experience Curve Pricing
 
- based on the learning effect, which holds that the unit cost of many products and services...
13
Loss Leader Pricing
 
- not to increase sales, but to attract customers in hopes they will buy other products as...
14
Step Five in the Pricing Process
 
Set the List or Quoted Price:
- Fixed vs. Flexible Price Policy
- Choosing a Price Policy
15
One-price Policy
 
- (a.k.a. fixed pricing) setting one price for all buyers of a product or service
16
Flexible Pricing Policy
 
- (a.k.a. dynamic pricing) setting different price for products and services depending on individual...
17
Product Line Pricing
 
- setting the prices for all items in a product line
- determines: 
   ...
18
Price War
 
- involves successive price cutting by competitors to increase or maintain their unit sales...
19
Step Six in the Pricing Process
 
Make Special Adjustments to the list or quoted price
- discounts, allowances
20
Discounts
 
- reductions from the list price that a seller gives a buyer as reward for some activity of...
21
Quantity Discounts
 
- when a customer buys more they get a discount for buying large amounts
22
Seasonal Discounts
 
- encourages buyers to stock inventory earlier than their normal demand would require
23
Cash Discounts
 
- if you pay with cash and quickly, a discount will be received
24
Allowances
 
- reductions from list or quoted prices to buyers for performing some activities
(trade-in,...
25
Trade-in Allowances
 
- price reduction given when a used product is part of the payment of new product
26
Promotional Allowances
 
- undertaking certain advertising or selling activities to promote a product
27
Everyday Low Pricing
 
- practice of replacing promotional allowances with lower manufacturer list price

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