CHAPTER 6 Flashcards
PRICING STRATEGY (32 cards)
is one of the significant elements of marketing mix (4P’s).
PRICE
is the amount that the customer pays for a product; it is the amount of money exchanged for something of value.
PRICE
It is the sum of values that consumers exchange for the benefit of having or using the product.
PRICE
It goes by several other names such as rent, professional fee, room rates, tuition, fees, etc.
PRICE
AN ACT PROVIDING PROTECTION TO CONSUMERS BY STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME COMMODITIES AND BY PRESCRIBING MEASURES AGAINST UNDUE PRICE INCREASES DURING EMERGENCY SITUATIONS AND LIKE OCCASIONS
REPUBLIC ACT NO. _____
7581
REPUBLIC ACT NO.7581
also known as the ________
PRICE ACT
REPUBLIC ACT NO.7581
also known as the PRICE ACT
May 27, 1992
AN ACT PROVIDING _____________TO CONSUMERS BY __________ THE PRICES OF ______________ AND _____________ AND BY PRESCRIBING MEASURES AGAINST UNDUE PRICE INCREASES DURING EMERGENCY SITUATIONS AND LIKE OCCASIONS
PROTECTION
STABILIZING
BASIC NECESSITIES
PRIME COMMODITIES
REPUBLIC ACT NO.7581
also known as the PRICE ACT
May 27, 1992
AN ACT PROVIDING PROTECTION TO CONSUMERS BY STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME COMMODITIES AND BY ____________________ AGAINST UNDUE PRICE INCREASES ___________________________ AND LIKE __________
PRESCRIBING MEASURES
DURING EMERGENCY SITUATIONS
OCCASIONS
The department, agency or office of the Government which has jurisdiction over a basic necessity or prime commodity.
IMPLEMENTING AGENCY
with reference to agricultural crops, fish and other marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other farm inputs;
The Department of Agriculture,
__________________________________________, with reference to wood and other forest products; and
The Department of Environment & Natural resources
with reference to all other basic necessities and prime commodities.
The Department of Trade and Industry
ILLEGAL ACTS OF PRICE MANIPULATION
Section ___of R.A _______
5
7581
which is the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the refusal to dispose of any basic necessity of prime commodity to the general public or the unjustified taking out of any basic necessity or prime commodity from the channels of reproduction.
HOARDING
which is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth.
PROFITEERING
which is any agreement between competing firms in the same industry to coordinate their actions to manipulate market outcomes such as prices, production levels, or market shares.
CARTEL
__________ for Acts of Illegal Price Manipulation - Any person who commits any act of illegal price manipulation of any basic necessity or prime commodity under
PENALTY
IN PENALTY
________________________________ - Any person who commits any act of illegal price manipulation of any basic necessity or prime commodity under
Penalty for Acts of Illegal Price Manipulation
PENALTY:
Section 5 hereof shall suffer the penalty of imprisonment for a period of ________________________________________________________________ and shall be imposed a _____ of _______________________________________________________ not less than Five thousand pesos (P5,000) nor more than Two million pesos (P2,000,000).
not less than five (5) years nor more than Fifteen (15) years
fine
not less than Five thousand pesos (P5,000) nor more than Two million pesos (P2,000,000).
Prestige Pricing, Market Skimming Pricing, Market Penetration Pricing, Product Bundling Pricing, Volume Discounts, Discount Based on Time of Purchase, Discriminatory Pricing, Psychological Pricing, Promotional Pricing, Value Pricing
ARE EXAMPLE OF ________________________
PRICING STRATEGIES
__________________ are ways by which businesses offer goods and services at the “right” price.
Pricing Strategies / Pricing strategy
is used when the goods and services are positioned to luxurious and elegant. Having a higher price (compared to prevailing market prices) projects the product is high-end and prestigious.
Example: El Nido Resort caters a class A market, they have a Villa at ₱30,500 per night for maximum of 3 person
PRESTIGE PRICING
Employs when the market price is insensitive.
This is an effective short-term policy since competition can easily come in and provide more supply.
Example: Before: ₱125.00, Now: ₱100.00
MARKET SKIMMING PRICING
is used when setting a low initial selling price to penetrate the market quickly and attract many buyers for a large market share.
Example: Tagaytay Country Hotel maintains relatively lower rates compared to the more expensive Twin Lakes Hotel, which is also in Tagaytay. This is a strategy to attract a wider segment of the market.
MARKET PENETRATION PRICING
