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Marketing Exam #4 > Ch 17 Pricing Objective and Policies > Flashcards

Ch 17 Pricing Objective and Policies Flashcards

1
Q

the amount of money that is charged for “something” of value

A

Price

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2
Q

sets a specific level of profit as an objective

A

Target return objective

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3
Q

seeks to get as much profit as possible

A

Profit maximization objective

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4
Q

seeks some level of units sales, dollar sales, or share of marketing- without referring to profit

A

Sales-oriented objective

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5
Q

don’t-rock-the-pricing-boat objective

A

Status quo objectives

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6
Q

affresive action on one or more of the Ps other than price

A

Nonprice competition

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7
Q

consciously set prices

A

Administered prices

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8
Q

means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

A

one-price policy

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9
Q

means offering the same product and quantities to different customers at different prices

A

Flexible-price policy

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10
Q

tries to sell the top (skim the cream) of a market- the top of the demand curve- at a high price before aiming at more price-sensitive customers

A

Skimming price policy

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11
Q

tries to sell the whole market at one low price

A

Penetration pricing policy

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12
Q

temporary price cuts- to speed new products into a market and get customers to try them.

A

Introductory price dealing

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13
Q

are the prices final customers or users are normally asked to pay for products

A

Basic list prices

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14
Q

are reductions offered to encourage customers to buy in larger amounts

A

Quantity discounts

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15
Q

are reductions from the price given by a seller to buyers who either give up some marketing function or provide the funstions themselves

A

Discounts

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16
Q

apply to purchases over a given period0 such as a year- and the discounts usually increase as the amount of purchase increases

A

Cumulative quantity discounts

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17
Q

apple only to individual orders

A

Noncumulative quantity discounts

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18
Q

are discounts offered to encourage buyers to buy earlier than present demand requires

A

Seasonal discounts

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19
Q

means the payment for the face value to the invoice is due immediately.

A

Net

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20
Q

are reductions in prce to encourage buyers to pay their bills quickly

A

Cash discounts

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21
Q

means the buyer can take 2 percent discount off the face value of the invoice if the invoice is paid within 10 days. Otherwise, the full face value is due within 30 days.

A

2/10, net 30

22
Q

is a list price reduction given to channel members for job they are going to do

A

Trade (functional) discounts

23
Q

is a temporary discount from the list price

A

Sales price

24
Q

setting low list price rather than relying on frequent sales, discounts, or allowances.

A

Everyday low pricing

25
Q

like discounts, are given to final consumers, customers, or channel members for doing something or accepting less of something

A

Allowances

26
Q

are price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier’s products locally.

A

Advertising allowances

27
Q

sometimes called slotting allowances- are given to an intermediary to get shelf space for a product

A

Stocking allowances

28
Q

sometimes called PM1 or spiffs- are given to retailers bu manufacturers or wholesalers to pass on the retailer’s salesclerks for aggressively selling certain items.

A

Push money ( or prize money) allowances

29
Q

is a price reduction given for used products when similar new products are bought

A

trade-in allowance

30
Q

refunds paid to customers after a purchase

A

rebates

31
Q

which means free on board some vehicle at some place

A

F.O.B.

32
Q

means making an average freight charge to all buyers within specific geographic areas

A

Zone pricing

33
Q

mean making an average freight charge to all buyers

A

Uniform delivered pricing

34
Q

means absorbing freight cost so that a firm’s delivered price meets that of the nearest competitor

A

freight-absorbtion pricing

35
Q

means setting a fair price level for a marketing mix that really gives the target market superior customer value

A

Value pricing

36
Q

put a lower limit on prices, especially at the wholesaler and retail levels

A

unfair trade practice acts

37
Q

is pricing a product sold in a foreign market below the cost of producing it or at the price lower than in its domestic market

A

dumping

38
Q

prices customers are shown to suggest that the price has been discounted from list

A

Phony list price

39
Q

bans “unfair or deceptive acts in commerce

A

Wheeler Lea Amendment

40
Q

competitors getting together to raise, lower, or stabilize prices- is common and relative easy

A

price fixing

41
Q

make price discrimination illegal

A

Robinson-Patman act

42
Q

selling the same products to different buyers at different prices- if it injures competition

A

Price discrimination

43
Q

The price charged to customers
multiplied by the number of
units sold

A

Revenue

44
Q

Revenue minus expenses

A

Profit

45
Q

The buyer absorbs the freight costs from the shipping point(“free on board”).

A

FOB Origin

Pricing

46
Q

The seller pays the freight charges and bills the purchaser an identical, flat freight charge.

A

Uniform
Delivered
Pricing

47
Q

The U.S. is divided into zones, and a flat freight rate is charged to
customers in a given zone.

A

Zone Pricing

48
Q

The seller pays for all or part of the freight charges and does not pass them on to the buyer.

A

Freight
Absorption
Pricing

49
Q

Laws that prohibit wholesalers
and retailers from selling below
cost

A

Unfair TradePractices Acts

50
Q

An agreement between 2 or more
firms on the price they will charge
for a product

A

Price

Fixing

51
Q

The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.

A

Predatory Pricing

Marketing Exam #4 (4 decks)

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