Flashcards in Chapter 6: The Pricing of Services Deck (29)
The actual dollar price paid by the consumer for a product.
The time the customer has to spend to acquire the service.
The physical energy spent by the customer to acquire the service.
The mental energy spent by the customer to acquire the service.
The worth assigned to the product by the customer.
The worth assigned to the service by the customer.
The worth assigned to the service-providing personnel by the customer.
The worth assigned to the image of the service or service provider by the customer.
Costs that are planned and accrued during the operating period regardless of the level of production and sales.
Costs that are directly associated with increases in production and sales.
Based on the idea of the more you produce, the cheaper it is to produce it.... the cheaper it is to produce it, the cheaper it can be sold.... the cheaper it can be sold, the more is sold.... the more it is sold, the more it can be produced (and so on).
Economies of scale
The type of market demand when a change in the price of a service is greater than a change in quantity demanded.
A measure of the responsiveness of a demand for a service relative to a change in price for another service.
The effect of cross-price elasticity in which an increase in the price of product A decreases the demand for product B.
The effect of cross-price elasticity in which an increase in the price of product A increases the demand for product B.
The practice of charging different customers different prices for essentially the same service.
Items that customers buy often, so they are very well aware of typical prices.
The price a consumer considers to capture the value he or she places on the benefits.
The practice of marketing two or more products and/or services in a single package at a single price.
When retailers purchase enough product on deal to carry over until the product is being sold on deal again.
The practice of pricing multiple versions of the same product or grouping similar products together.
Cost-driven price increases are perceived as fair, whereas demand-driven price increases are viewed as unfair.
Pricing strategies that are designed to reduce the amount of perceived risk associated with a purchase.
A pricing strategy that charges customers for services actually used as opposed to overall "membership" fees.
A pricing strategy in which the customer pays a fixed price and the provider assumes the risk of price increases and cost overruns.
Pricing strategies that encourage customers to enhance and expand their dealings with the service provider.
Price-bundling technique that allows consumers to either buy Service A and Service B together or purchase one service separately.
Pricing strategies that appeal to economically minded consumers by delivering the best and most cost-effective service for the price.