PrCtoSNOM Flashcards
(48 cards)
_____ is what a business charges for its products or services, and it’s essential for
generating revenue and profit.
Pricing
help businesses set the right price to maximize profits and stay competitive. They consider factors like production costs, competitor prices,
and customer willingness to pay
Pricing Strategies
Pricing Strategies
__________ – This strategy involves adding a fixed percentage to the production cost to set the selling price. It’s simple and ensures costs are covered, but it doesn’t always account for customer demand.
__________ – Prices are set based on what competitors are charging. It’s commonly used in markets with similar products to ensure businesses stay competitive and avoid overpricing.
__________ – Starts with a low price to draw in customers and capture market share quickly. Once the product is established, the price is gradually increased.
__________ – Involves setting a high initial price for a new or unique product to capture early profits, then lowering the price as competition increases.
__________ – Prices are based on what customers believe the product is worth, not just the production cost. Effective for products with unique features or strong brand loyalty.
__________ – Involves changing prices in real-time based on factors like demand or time of day. Common in travel, ride-sharing, and e-commerce.
__________ – Setting high prices to create a sense of luxury or exclusivity. Used for high-quality, upscale items where customers are willing to pay for superior value.
Choices:
Cost-Plus Pricing
Competitive Pricing
Penetration Pricing
Price Skimming
Value-Based Pricing
Dynamic Pricing
Premium Pricing
Answer Key:
Cost-Plus Pricing
Competitive Pricing
Penetration Pricing
Price Skimming
Value-Based Pricing
Dynamic Pricing
Premium Pricing
Price Adjustments and Discounts
__________ – Reduces prices for off-season products to drive early sales. Helps businesses maintain steady production and balance demand during off-peak periods.
__________ – Reduced prices for bulk purchases, early bill payment, intermediaries handling tasks, trade-ins, or promotions.
__________ – Temporary discounts to drive immediate sales or linked to special events or holidays.
Choices:
Seasonal Pricing
Discount Strategies
Promotional Pricing
Answer Key:
Seasonal Pricing
Discount Strategies
Promotional Pricing
Geographic and Psychological Pricing Adjustments
__________ – Prices are adjusted based on location, factoring in shipping costs, demand, and regional market conditions.
__________ – Setting prices just below whole numbers (e.g., $9.99 instead of $10) to make it seem cheaper. Designed to influence buyer’s emotions and encourage quick purchasing.
Choices:
Geographic Pricing
Psychological Pricing
Answer Key:
Geographic Pricing
Psychological Pricing
______________ measures how demand for a product or service responds to price changes. Understanding this helps businesses adjust their pricing
strategies effectively to boost revenue and profit.
Price elasticity of demand (PED)
__________ – Demand changes significantly when prices change. Example: Luxury goods, electronics, dining out. Customers can easily find cheaper options.
__________ – Demand remains stable even with price changes. Example: Necessities like gas, medicine, utilities. Consumers keep purchasing, even with higher prices, as there are few alternatives.
Choices:
Elastic Demand
Inelastic Demand
Answer Key:
Elastic Demand
Inelastic Demand
______________ involves setting prices according to their competitors to attract customers. However, ______________ can occur when businesses continuously lower their
prices to outbid each other, which can harm profits and cause market instability.
Competitive Pricing/ price wars
Competitive Pricing
__________ – The goal is to set prices at or slightly below competitors’ to attract more customers and increase market share. However, constantly changing prices to stay competitive can lead to lower profit margins.
__________ – Begins when one company lowers its prices to gain customers, and competitors follow. This results in lower prices, shrinking profits, and can push weaker businesses out of the market.
Choices:
Competitive Pricing
Price Wars
Answer Key:
Competitive Pricing
Price Wars
B. Competitive Pricing Tactics
__________ – The company matches or lowers a competitor’s price to attract non-conscious customers. This works well in markets where products are similar.
__________ – Set a low initial price for early adopters, and the price is gradually lowered to attract more price-sensitive customers.
__________ – Prices are adjusted based on demand, customer behavior, or time to maximize revenue by targeting different customer segments.
__________ – A low starting price is set to quickly gain market share, then raise the price as the product becomes more popular.
__________ – Offering temporary discounts or sales to create urgency and boost short-term sales.
Choices:
Price Matching
Price Skimming
Dynamic Pricing
Penetration Pricing
Promotional Pricing
Answer Key:
Price Matching
Price Skimming
Dynamic Pricing
Penetration Pricing
Promotional Pricing
Risks and Benefits of Matching Competitor Prices
__________ – Matching competitors’ prices can boost customer satisfaction and build loyalty among price-sensitive customers.
__________ – Helps businesses stay competitive by keeping their products appealing in price-driven markets.
__________ – Constantly adjusting prices can reduce profit margins, especially for businesses with already thin margins.
__________ – Can lead to a cycle of price cuts, increasing market rivalry and making it harder for businesses to maintain their position.
__________ – Requires continuous monitoring and adjustment, demanding effort and resources that may not support long-term goals.
Choices:
Price Matching Benefits
Price Matching Risks
Answer Key:
Price Matching Benefits
Price Matching Benefits
Price Matching Risks
Price Matching Risks
Price Matching Risks
D. Risks and Benefits of Price War
__________ – Competitive pressure can lead to product improvements and innovations.
__________ – Drives prices down, benefiting customers.
__________ – Can increase the variety of supplier options for consumers.
__________ – Lowering prices too much can significantly hurt profit margins.
__________ – Products may become seen as interchangeable, reducing brand loyalty.
__________ – Prolonged price wars can cause business closures and market disruption.
Choices:
Price War Benefits
Price War Risks
Answer Key:
Price War Benefits
Price War Benefits
Price War Benefits
Price War Risks
Price War Risks
Price War Risks
__________ involves setting product prices in different countries, taking into account factors like local economies, currency fluctuations, cultural differences, and
regulations
International pricing
A. Global Pricing Considerations
__________ – Exchange rates can affect prices. A strong local currency may require lower prices to remain competitive.
__________ – Consumer preferences and value perceptions vary by region, so a pricing strategy that works in one country might need adjustments in another.
__________ – Pricing laws differ worldwide, including rules on price fixing, price controls, and other pricing restrictions.
__________ – Language barriers can affect marketing and pricing, as cultural nuances affect value perception.
__________ – Different regions have varying distribution methods (e.g., retailers, wholesalers, online platforms), affecting pricing based on costs and margins.
Choices:
Currency Fluctuations
Cultural Differences
Legal Issues
Language and Communication
Distribution Channels
Answer Key:
Currency Fluctuations
Cultural Differences
Legal Issues
Language and Communication
Distribution Channels
B. Currency, Taxes, and Regulations Impacting International Pricing
__________ – Currency fluctuations can affect pricing, so businesses need to monitor exchange rate trends to maintain stable prices.
__________ – Vary by country and can raise product prices due to added costs.
__________ – Each market has its own pricing laws and rules on tariffs and consumer protection, which must be followed to avoid legal issues.
Choices:
Exchange Rates
Import Duties and Taxes
Local Regulations
Answer Key:
Exchange Rates
Import Duties and Taxes
Local Regulations
_________________
involves how companies deliver
messages to promote their
products, services, or brand. It
combines different media and
techniques—from traditional
advertising to digital channels
—to inform, influence, and
engage customers. The goal is
not just to reach customers but
to create a consistent brand
presence across all channels.
Marketing Communications
A. The Communication Process
__________ – This is typically the company or brand that creates the message to be communicated.
__________ – The actual content being communicated, which could be verbal, written, or visual.
__________ – The channel through which the message is delivered, like TV, social media, email, or print.
__________ – The target audience who receives and interprets the message.
__________ – The response from the receiver, which could include a purchase, an inquiry, or other actions.
__________ – External factors that may interfere with the message, such as distractions or misunderstandings.
Choices:
Sender
Message
Medium
Receiver
Feedback
Noise
Answer Key:
Sender
Message
Medium
Receiver
Feedback
Noise
B. The Marketing Communication Mix
__________ – Paid messages delivered through platforms such as TV, radio, digital ads, and print media to build awareness and influence behavior.
__________ – Temporary incentives like discounts, coupons, or contests designed to drive immediate sales and boost engagement.
__________ – Direct, one-on-one communication between a salesperson and a customer, effective for high-value or complex products.
__________ – Builds brand credibility by managing media relationships and generating positive press to foster long-term trust.
__________ – Personalized communication through email, telemarketing, and direct mail; highly targeted and measurable.
Choices:
Advertising
Sales Promotion
Personal Selling
Public Relations (PR)
Direct Marketing
Answer Key:
Advertising
Sales Promotion
Personal Selling
Public Relations (PR)
Direct Marketing
_____________ covers the entire process, from recognizing a need to
discarding a product. It involves decision-making, product usage, and how
emotions, beliefs, and personal factors influence choices
Consumer behavior
_______________ focuses on the mental processes behind purchasing decisions, examining how emotions, thoughts, and social factors shape purchasing decisions.
It looks at how consumers evaluate, compare, and select products based on their perceptions and beliefs.
Consumer psychology
Understanding Consumer Psychology and Decision-Making
__________ – Buying decisions are often driven by the desire to meet basic or emotional needs, like hunger or self-esteem.
__________ – Consumers interpret product information based on past experiences and attitudes, which influences how they perceive a brand.
__________ – Factors like peer recommendations, social media, and advertising play a key role in shaping consumer choices.
Choices:
Motivation
Perception
Social Influence
Answer Key:
Motivation
Perception
Social Influence
B. Segmentation, Targeting, and Positioning in Marketing
__________ – The process of dividing a broad market into smaller groups based on common traits like demographics, geography, interests, or behaviors.
__________ – Involves choosing the most promising segments to prioritize and creating tailored marketing campaigns for them.
__________ – Shaping how a product or brand is perceived by clearly conveying its unique value and benefits to the target audience.
Choices:
Segmentation
Targeting
Positioning
Answer Key:
Segmentation
Targeting
Positioning
The _____________ is a series of steps that consumers follow when deciding whether to purchase a product or service.
buyer decision process
C. The Buyer Decision Process and the Role of Marketing Communications
__________ – The stage where a consumer realizes they have a need or problem that requires attention.
__________ – The consumer begins seeking information to find solutions, often through online searches, reviews, or recommendations.
__________ – The stage where consumers compare various products or brands to determine the best option.
__________ – The consumer makes the final buying decision based on the information gathered and comparisons made.
__________ – The consumer evaluates their satisfaction with the purchase, which can influence future buying behavior.
Choices:
Purchase Decision
Evaluation of Alternatives
Problem Recognition
Post-Purchase Evaluation
Information Search
Answer Key:
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-Purchase Evaluation
