Chapter 18 Flashcards Preview

Marketing > Chapter 18 > Flashcards

Flashcards in Chapter 18 Deck (24)
Loading flashcards...
1
Q

What is Markup

A

A dollar amount added to the cost of products to get the selling price

2
Q

Markup (percent)

A

The percentage of selling price that is added to the cost to get the selling price

3
Q

What is the markup chain

A

The sequence of markups firms use at different levels in the channel

4
Q

What is the stockturn rate

A

The number of times the average inventory is sold during a year

5
Q

What is average cost pricing

A

Adding a reasonable markup to the average cost of a product

6
Q

What is a break even analysis

A

An approach to determine whether the firm will be able to break even with a particular price

7
Q

What is the break even point

A

The sales quantity where the firm’s total cost will just equal its total revenue

8
Q

Fixed cost contribution per unit

A

The selling price per unit minus the variable cost per unit

9
Q

What is the marginal analysis

A

Evaluating the change in total revenue and total cost from selling one more unit

10
Q

Where will the highest profit be earned

A

At the price were marginal cost is just less than or equal to marginal revenue

11
Q

Value in use pricing

A

Setting prices that will capture some of what consumers will save by substituting the firms product for the one currently being used

12
Q

Reference price

A

The price a consumer expects to pay

13
Q

Leader pricing

A

Setting some very low prices to get customers into retail stores

14
Q

Bait pricing

A

Setting some very low prices to attract customers but trying to sell more expensive models are brands wants the customers in the store

15
Q

Psychological pricing

A

Setting prices that have special appeal to target customers

16
Q

Odd even pricing

A

Setting prices that end in certain numbers

17
Q

Price lining

A

Setting a few price levels for a product line and then marking all items at these prices

18
Q

Demand backward pricing

A

Setting an acceptable final consumer price and working backward to what a producer can charge

19
Q

What is prestige pricing

A

Setting a rather high price to suggest high-quality or high status

20
Q

What is full line pricing

A

Setting prices for a whole line of products

21
Q

What is complementary product pricing

A

Setting prices on several related products as a group

22
Q

What is product bundle pricing

A

Setting one price for a set of products

23
Q

What is bid pricing

A

Offering a specific Price for each possible job rather than setting a price that applies for all customers

24
Q

What is a negotiated price

A

A price that is set based on bargaining between buyer and seller