Common Pricing Strategies Flashcards
(25 cards)
charging different prices to different buyers for the same quality and quantity of product
differential pricing
final price established through buyer/seller bargaining
negotiated pricing
one price for a primary target market and a different price for another market
secondary-market pricing (gray market)
setting the price for new products is one of the most fundamental decisions in the marketing mix
new-product pricing
charging the highest possible price that buyers who desire the product most will pay
(affects a lot of competitors)
price skimming
setting the price below competing brands to penetrate a market and gain market share quickly
penetration pricing
establishing and adjusting prices of MULTIPLE PRODUCTS within a product line
(maximize profits for an entire product line)
product-line pricing strategies
basic product in a product line is priced low while required related items are priced high
Ex: razor & blades
captive pricing
giving the highest quality products in a line the highest prices
Ex: Lebron nikes
premium pricing
low pricing on one item in a line with the intention of selling higher priced items in line
cheap phone trying to sell upgrade
bait pricing
limited number of prices for selected line of merchandise
-couple similar prices in each level
price lining
positioning a moderately priced item next to a more expensive brand to make it seem lower in price
internal-buy it a lot so price is perceived
external-dont buy it a lot so no perceived price
reference price
packaging complementary products to be sold at a signle price
bundle pricing
packaging together two or more identical products to be sold at a single price
multiple-unit pricing
setting a low price on product on a consistent basis
walmart
Everyday low price
stocking well-known branded items at high prices in order to sell store brands at discounted prices
selling against the brand
ending the price with certain numbers that influence buyers perceptions of the price
odd-even pricing
pricing certain goods on the basis of tradition
customary pricing
setting prices at an artificially high level to convey high quality
prestige pricing
concerned about both price and quality of a prodct
value- conscious buyer
strive to always pay low price
price-conscious buyer
focus on products that signify prominence and status
prestige-sensitive buyer
used by people with great skill or xp in the field or activity
-standard fee
-ethical responsibility to not overcharge customers
EX: doctors visit
professional pricing
laws that prohibit wholesalers and retailers from selling below cost
unfair trade practice acts
