CHAP 6 Flashcards
(27 cards)
is one of the significant elements of marketing mix (4P’s).
PRICE
is the amount that the customer pays for a product; it is the amount of money exchanged for something of value. It is the sum of values that consumers exchange for the benefit of having or using the product.
PRICE
It goes by several other names such as
price, professional fee, room rates, tuition fees
also know as the PRICE ACT (May 27, 1992)
RA NO. 7581
An act providing protection to the consumers by stabilizing the prices of basic necessities and prime commodities and by prescribing measures against undue price increases during emegency situations like occasions.
REPUBLIC ACT 7581 OR PRICE ACT
What are the implementing agency of RA 7581?
department of agriculture
department of health
depatment of environment and natural resources
department of trade and industry
with reference to drugs
department of health
with reference to agricultural crops, fish and other marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other farm inputs;
department of agriculture
with reference to wood and other forest products;
department of environment and natural resources
with reference to all other basic necessities and prime commodities.
department of trade and industry
illegal acts of price manipulation sec 5 of RA 7581/price act
hoarding
profiteering
cartel
which is the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the refusal to dispose of any basic necessity of prime commodity to the general public or the unjustified taking out of any basic necessity or prime commodity from the channels of reproduction.
hoarding
which is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth.
profiteering
which is any agreement between competing firms in the same industry to coordinate their actions to manipulate market outcomes such as prices, production levels, or market shares
cartel
Any person who commits any act of illegal price manipulation of any basic necessity or prime commodity under Section 5 hereof shall suffer the penalty of imprisonment for a period of not less than____________ and shall be imposed a fine of not less than________
5 years or more thanb 15 years; not less than 5k or more than 2m
are ways by which businesses offer goods and services at the “right” price.
pricing strategies
is used when the goods and services are positioned to luxurious and elegant. Having a higher price (compared to prevailing
market prices) projects the product is high-end and prestigious.
prestige pricing
what are the pricing strategies
prestige pricing
market skimming pricing
market penetration pricing
product bundling pricing
volume discounts
discounts based on the time of purchase
discriminatory pricing
psychological pricing
promotional pricing
value pricing
Employs when the market price is insensitive. This is an effective short-term policy since competition can easily come in and provide the more supply.
market skimming pricing
is used when setting a low initial selling price to penetrate the market quickly and attract many buyers for a large market share.
market penetration pricing
is a strategy used to attract buyers to purchase because of the reduced rate of the bundle compared to the total cost of the items if purchased individually.
product bundling pricing
are rates given to frequent or high-volume users to attract them to purchase the products.
volume discounts
The use of ₱999 instead of ₱1,000 gives an impression that the price is less than one thousand pesos when it actually is just ₱1.00 less. In fact, the ₱1.00 is not of much value but it makes a lot of differences in the mind of the buyer.
psychological pricing
This strategy addresses the seasonality aspect of the tourism product. A price reduction is given to buyers who purchase services out of season when the demand is lower or way ahead of time.
discount base on the time of purchase
