Chapter 10 Flashcards Preview

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Flashcards in Chapter 10 Deck (20):
1

A pricing strategy in which a firm decides to price at some market average price in context with prices of competitors

Competitor Based Pricing

2

A pricing strategy in which a firm attempts to take into account the role of price as it reflects the bundle of benefits sought by the customer

Value Pricing

3

A pricing tactic in which a firm affords the marketing manager an opportunity to develop a rational pricing approach across a complete line of related items

Product line pricing

4

A pricing tactic of gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate

Captive pricing

5

A pricing tactic in which customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately

Price bundling

6

A pricing strategy in which a firm gives customers comparative prices when considering purchase of a product so they are not viewing a price in isolation from prices of other choices

Reference pricing

7

A pricing tactic that lends prestige to a product or brand by virtue of a price relatively higher than the competition

Prestige pricing

8

A pricing tactic in which the price marked on a good is what it typically sells for

One-price strategy

9

A pricing tactic in which customers are allowed or encouraged to haggle about prices

Variable pricing

10

A pricing tactic that entails relatively low, constant prices and minimal spending on promotional efforts

Everyday low pricing

11

A pricing strategy in which the retailer offers frequent discounts, primarily through sales promotions, to stated regular prices

High/low pricing

12

A pricing tactic in which individuals competitively bid against each other and the purchase goes to the highest bidder

Auction pricing

13

A pricing decision made by considering fixed costs and then demand forecasting to determine the price per unit

Target-return pricing

14

A pricing decision made by identifying all costs associated with an offering to come up with what the average cost of a single unit should be

Average-cost pricing

15

A percentage discount off invoice to elicit quicker payment by the customer

Cash discounts

16

An incentive to a channel member for performing some function in the channel that benefits the seller

Trade discounts

17

Discounts taken off an invoice price based on different levels of product purchased

Quantity discounts

18

Discounts that reward the purchaser for shifting part of the inventory storage function away from the manufacturer

Seasonal discounts

19

Sales promotions initiated by the manufacturer and carried out by the retailer, who is then compensated by the manufacturer

Promotional allowances

20

When the same delivery fee is charged to customers regardless of geographic location within a set area

Uniform delivered pricing