chapter 11.2

Question 1

amount of money requested/exchanged for a product

Answer 1

price

Question 2

relative worth of something to a person

Answer 2

value

Question 3

explanation of a value of a certain product over others that are similar

Answer 3

value proposition

Question 4

the established price printed in a catalog, on a price tag, or on a price list

Answer 4

list price

Question 5

the actual price a customer pays for a product after any discounts or coupons are deducted

Answer 5

selling price

Question 6

price recommended by the manufacturer

Answer 6

manufacturer’s suggested retail price (MSRP)

Question 7

goals defined in the business and marketing plans for the overall pricing policies of the company

Answer 7

pricing objectives

Question 8

a pricing objective based on offering the lowest price possible to get the largest number of customers to buy the product

Answer 8

maximizing sales

Question 9

a pricing objective that aims to generate as much revenue as possible in relation to total cost

Answer 9

maximizing profit

Question 10

Company goals, expenses, customers perception, competition, supply and demand, economic conditions, product life-cycle

Answer 10

factors influencing a price of a product

Question 11

price of a brand new product is often high

Answer 11

introduction stage

Question 12

more competitors enter the market and the high price of new products usually falls

Answer 12

growth stage

Question 13

sales and price of products are stable

Answer 13

maturity stage

Question 14

price is often significantly reduced and some products are eliminated

Answer 14

decline stage

Question 15

the point at which revenue from sales equals the cost (product starts making profit)

Answer 15

break-even point

Question 16

the amount added to the cost to determine the price

Answer 16

markup

Question 17

the general price at which the company expects to sell the product

Answer 17

base price

Question 18

pricing techniques that create an image of a product that entice costumer’s to buy

Answer 18

psychological pricing

Question 19

prices end in an odd number

Answer 19

odd pricing

Question 20

prices end in an even number

Answer 20

even pricing

Question 21

prices high to convey quality and status

Answer 21

prestige pricing

Question 22

various prices for same type of product to indicate different levels of quality

Answer 22

price lining

Question 23

free or reduced-price item when another is purchased at full price

Answer 23

Buy one Get one (BOGO) pricing

Question 24

combines two or more products for one price

Answer 24

bundling

Question 25

selling overseas

Answer 25

international

Question 26

selling where you are

Answer 26

geonational

Question 27

a percentage deducted from the total invoice amount

Answer 27

cash discount

Question 28

given to businesses that agree to advertise or promote a manufacturer's product

Answer 28

promotional discount

Question 29

offers a reduced per-item price for larger numbers of an item purchased

Answer 29

quantity discount

Question 30

offered by retailers when they buy goods well in advance of a season

Answer 30

seasonal discount

Question 31

the way manufacturers quote prices to wholesalers and retailers; percentage off list price

Answer 31

trade discount

Question 32

the practice of advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in store

Answer 32

bait and switch

Question 33

a group of competitors get together and set the price for a specific product

Answer 33

pricing fixing

Question 34

when a company sells the same product to different customers at different prices based on their personal characteristics of the customer

Answer 34

price discrimination

Question 35

the illegal pricing of products in a way that intentionally misleads customers

Answer 35

deceptive pricing

Question 36

the practice of setting very low prices to get rid of competition

Answer 36

predatory pricing

Question 37

pricing an item much lower than the current market price or the cost of acquiring a product

Answer 37

loss leader

Question 38

the raising of prices on certain kinds of goods to an excessively high level during an emergency

Answer 38

price gouging

Question 39

maximum price set by government for certain goods and services that it thinks are being priced to high

Answer 39

price ceilings

Question 40

minimum price set by the government for certain goods and services that it thinks are being priced to low

Answer 40

price floors