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Principles of Marketing #1 > Exam #4 Part 4 > Flashcards

Exam #4 Part 4 Flashcards

1
Q

Elastic Demand

A

Draw it!

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2
Q

Inelastic Demand

A

Draw it!

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3
Q

The Pricing Process (6)

A
  • Analyze market conditions
  • Identify constraints
  • Establish objectives
  • Analyze profit potential
  • Determine initial price levels
  • Adjust and manage prices
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4
Q

Major Pricing Objectives (9)

A
  • Maximum current profit
  • Maximum current sales growth
  • Maximum current revenue
  • Product-quality leadership
  • Survival
  • Positioning in consumer minds
  • Partial cost recovery
  • Full-cost recovery
  • Social price
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5
Q

Qualitative Measures of Price Sensitivity (9)

A
  • Customer expectations
  • Unique value
  • Substitute awareness
  • Difficult comparison
  • Total expenditure
  • Contribution to overall benefit
  • Shared cost
  • Sunk investments
  • Price-quality associations
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6
Q

Customer expectations

A

Expect to pay

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7
Q

Unique value

A

Can’t be found elsewhere

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8
Q

Substitute awareness

A

Viable?

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9
Q

Difficult comparison

A

Experience/credence

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10
Q

Total expenditure

A

Total cost - 10% discount

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11
Q

Contribution to overall benefit

A

Steelcase

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12
Q

Shared cost

A

Insurance

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13
Q

Sunk investments

A

Accountants, lawyers

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14
Q

Price-quality associations

A

Get what you pay for

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15
Q

Demand Based Pricing Techniques (9)

A
  • Value pricing
  • Skim pricing
  • Penetration pricing
  • Prestige pricing
  • Odd-even pricing
  • Price-lining
  • Unit pricing
  • Bundle Pricing
  • Demand-backwards pricing
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16
Q

Value pricing

A

Adopting a lower price while maintaining the product’s basic value

17
Q

Skim pricing

A

Charge a high price for an innovative or unique new product

18
Q

Penetration pricing

A

Sets a lower price with a specific intention of gaining market share

19
Q

Prestige pricing

A

Price to help you position a product as high quality or exclusive

20
Q

Odd-even pricing

A

Uses specific numbers for psychological effect

21
Q

Price-lining

A

Establishing a number of price levels covering a product line

22
Q

Unit pricing

A

Price shown by some standard of measure

23
Q

Bundle Pricing

A

Offer a package price for a group of related goods/services

24
Q

Demand-backwards pricing

A

Starts with an assessment of price customers are willing to pay

25
Q

Competitive Pricing Moves (4)

A
  • Cooperative Pricing
  • Adaptive Pricing
  • Opportunistic Pricing
  • Predatory Pricing
26
Q

Cooperative Pricing

A

non-explicit agreement on pricing

27
Q

Adaptive Pricing

A

smaller competitors

28
Q

Opportunistic Pricing

A

initiate price cuts or delay increases

29
Q

Predatory Pricing

A

set prices at low levels to inflict damage

30
Q

Signaling

A

sending messages to competitors

31
Q

Price War

A

Competitors constantly try to beat prices

Principles of Marketing #1 (9 decks)

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