Chapter 21 Flashcards Preview

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Flashcards in Chapter 21 Deck (30):
1

Pricing Objectives

Goals that describe what a firm wants to achieve through pricing.

2

Cost-Based Pricing

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

3

Cost-Plus Pricing

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

4

Markup Pricing

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

5

Demand-Based Pricing

Pricing based on the level of demand for the product.

6

Competition-Based Pricing

Pricing influenced primarily by competitor's prices.

7

Differential Pricing

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

8

Negotiated Pricing

Establishing a final price through bargaining between seller and customer.

9

Secondary-Market Pricing

Setting one price for the primary target market and a different price for another market.

10

Periodic Discounting

Temporary reduction of prices on a patterned or systematic basis.

11

Random Discounting

Temporarily reduction of prices on an unsystematic basis.

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Price Skimming

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

13

Penetration Pricing

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

14

Product-Line Pricing

Establishing and adjusting prices of multiple products within a product line.

15

Captive Pricing

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

16

Premium Pricing

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

17

Bait Pricing

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

18

Price Lining

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

19

Psychological Pricing

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

20

Reference Pricing

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

21

Bundle Pricing

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

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Multiple-Unit Pricing

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

23

Everyday Low Prices (EDLP)

Pricing products low on a consistent basis.

24

Odd-Even Pricing

Ending the price with certain numbers to influence buyers' perceptions of the price or product.

25

Customary Pricing

Pricing on the basis of tradition.

26

Prestige Pricing

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

27

Professional Pricing

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

28

Price Leaders

A product priced below the usual markup, near cost, or below cost.

29

Special-Event Pricing

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

30

Comparison Discounting

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