Chapter 21 Flashcards Preview

Principles of Marketing 15-21 > Chapter 21 > Flashcards

Flashcards in Chapter 21 Deck (30):
1

Goals that describe what a firm wants to achieve through pricing

Pricing objectives

2

Adding a dollar amount or percentage to the cost of the product

*cost-based pricing

3

Adding a specified dollar amount or percentage to the seller's cost

cost-plus pricing

4

Adding to the cost of the product a predetermined percentage of that cost

*Markup pricing

5

Pricing based on the level of demand for the product

demand-based pricing

6

Pricing influenced primarily by competitors prices

competition-based pricing

7

Charging different prices to different buyers for the same quality and quantity of product

differential pricing

8

Establishing a final price through bargaining between seller and customer

negotiated pricing

9

setting one price for the primary target and a different price for another market

Secondary-market price

10

Temporary reduction of prices on a patterned or systematic basis

Periodic discounting

11

Temporary reduction of prices on an unsystematic basis

random discounting

12

Charging the highest possible price that buyers who most desire the product will pay

*Price skimming

13

Setting prices below those of competing brands to penetrate a market and gain a significant marketshare quickly

Penetration pricing

14

Establishing and adjusting prices of multiple products with a product line

Product-line pricing

15

Pricing the basic product in a product line low, while pricing related items higher

*captive pricing

16

Pricing the highest-quality or most versatile products higher than other models in the product line

premium pricing

17

Pricing an item in a product line low with the intention of selling a higher priced item in the line

bait pricing

18

Setting a limited number of prices for selected groups or lines of merchandise

price lining

19

Pricing that attempts to influence a customer's perception of price to make a products price more attractive

Psychological pricing

20

Pricing a product at a moderate level and displaying it next to a more expensive model or brand

reference pricing

21

Packaging together two or more complementary product and selling them at a single price

bundle pricing

22

Packaging together two or more identical products and selling them at a single price

multiple-unit pricing

23

Pricing products low on a consistent basis

everyday low prices (EDLP)

24

Ending the price with certain number to influence buyer's perceptions of the price or product

odd-even pricing

25

Pricing on the basis of tradition

Customary pricing

26

Setting prices at an artificially high level to convey prestige or a quality image

*prestige pricing

27

Fees set by people with great skill or experience in a particular field

*Professional pricing

28

Products priced near or even below cost

price leaders

29

Advertised sales or price cutting linked to a holiday, a season, or an event

*special event pricing

30

Setting a price at a specific level and comparing it with a higher price

comparison discounting