Chapter 9- Perceived value: price and promotion Flashcards Preview

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Flashcards in Chapter 9- Perceived value: price and promotion Deck (12):
1

Define breakeven (1)

- minimum price a company willing to sell

2

Price ceiling and price floor (2)

- price ceiling: customer maximum price
- price floor: minimum price

3

Cost plus (mark up) (1)

- adding a standard markup to the cost of the product

4

Application of cost based pricing (3)

- ignore slope
- concern with cost then demand
- ignore customer perception

5

Value based pricing (2)

- value > price > cost
- customer perception rather then seller

6

Price sensitivity analysis (1)

- calculate utilities to estimate how much one attribute a customer is willing to give up

7

Competition based pricing (1)

- price determine by external environment

8

Market bearing strategies (3)

- penetration: low price
- status quo: same price
- skimming: high price

9

Psychological price (2)

- reference pricing: promotion
- odd/even

10

Price tactic (8)

- bundling/unbundling
- loss leader
- product line pricing: multiple product at different price
- captive pricing: two item used together
- price discrimination: elasticity
- second market discounting: producing too much
- periodic discounting
- service with fixed fee: subscription

11

Sales promotion (2)

- short term promotion, action focused
- coupon, rebates, and premium

12

Price legality and ethic (5)

- resale price
- predatory pricing
- price fixing
- deceptive pricing
- bait and switch