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2nd shift lecs > Price Mix > Flashcards

Price Mix Flashcards

1
Q

communicates the intended value positioning of a product or brand to the market.

A

price

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2
Q

is the element of the marketing mix that produces revenue, and the easiest to adjust

A

price

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3
Q

highest amount that a retailer may charger to a consumer for a medicine placed under price regulation

A

Maximum Drug Retail Price (MDRP)

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4
Q

No medicine under price regulation shall be sold to a customer at a price higher than the MDRP

A

Under RA 9502

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5
Q

Enabling laws of RA9502

A

EO 821 and EO 155

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6
Q

On top of the MDRP ________ and _______ are still eligible to avail of special discounts

A

Senior citizens and PWDs (20%)

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7
Q

Violation penalty under RA 9502

A

Php 50,000 to Php 5,000,000

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8
Q

In 2009, EO 821 mandated the price reduction of 5 important molecules

A
  • amlodipine
  • atorvastatin
  • azithromycin
  • cytarabine
  • doxorubicin

first line for diseases

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9
Q

When was the EO repealed for MDRP to have a new set of medicines

A

2021

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10
Q

Innovator brand of amlodipine

A

Norvasc (MDRP by law)

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11
Q

Criteria for determining MDRP include:

A
  1. Public health priorities
  2. High price differentials compared to international prices
  3. Limited competition or lack of generic counterparts
  4. Expensive and commonly prescribed drugs
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12
Q

Drug products that were price-controlled can also be removed by the govt. from having MDRP (t or f)

A

T

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13
Q

3 General pricing concepts

A
  • Reference prices
  • Price-quality inferences
  • Price Endings
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14
Q

Comparing an observed price to an internal reference price they remember or an external frame of reference such as a posted “regular retail price”

A

Reference prices

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15
Q

Types of Reference Prices

A
  • Fair Price
  • Typical Price
  • Upper-bound price
  • Lower-bound price
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16
Q

Price based on customer’s feelings

A

Fair price

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17
Q

usual price of a product in the market (SRP)

A

Typical price

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18
Q

Maximum price that consumers would pay; also called reservation price (konting taas sa SRP)

A

Upper-bound price

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19
Q

Minimum price that consumers would pay; also called lower threshold price

A

Lower-bound price

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20
Q

Is a concept where price is used as an indicator of a product’s quality; higher price = higher quality

A

Price-quality inference

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21
Q

Pricing concept based on consumer psychology where price is determined based on the numerical structure of a product’s price

A

Price endings

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22
Q

Example of price endings

A
  • Odd number pricing
  • “9” endings pricing
  • 0 and 5 endings
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23
Q

Limitations of price endings pricing

A
  • only useful when consumer price knowledge is poor
  • not usually effective for items that are not bought frequently
  • not usually effective if product design changes frequently
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24
Q

Steps in setting a product’s price

A
  1. Selecting the Pricing Objective
  2. Determining demand
  3. Estimating costs
  4. Analyzing competitor’s costs, prices, and offers
  5. selecting a pricing method
  6. selecting the final price
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25
Q

The company first decides where it wants to positions its market offering.

A

Selecting the Pricing Objective

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26
Q

5 Pricing Objectives

A
  • Survival
  • Maximum current profit
  • Maximum market share
  • market skimming
  • product-quality leadership
27
Q

intense competition, changing market wants, overcapacity

A

Survival

28
Q

maximum profit based on demand and cost estimation

A

Maximum current profit

29
Q

setting a lower price to capture/penetrate most of the market

A

Maximum market share

30
Q

price starts very high and goes down slowly over time

A

market skimming

31
Q

best-in class quality products can set highest price (Ex. innovator drug brands often set the highest price)

A

Product quality leadership

32
Q

Price and demand normally has an ______ relationship

A

Inverse

33
Q

Pertains to the reaction of a market changes in price. If a product price increases and demand goes down, it means the market is price sensitive

A

Price sensitivity

34
Q

Sets the maximum (ceiling price)

A

Demand

35
Q

sets the minimum (floor price)

A

Costs

36
Q

also called as overhead are costs that remain constant in producing a product (rent, salary)

A

Fixed costs

37
Q

are costs that change depending on production output (raw material and packaging material costs, electricity)

A

variable costs

38
Q

Price should cover either fixed or variable cost to make price effective (t or f)

A

F - cover both fixed and variable cost

39
Q

4 general methods in pricing

A
  • markup pricing
  • target-return pricing
  • perceived-value pricing
  • value pricing
40
Q

a company puts a markup above the production cost (unit cost) to determine the price of the product

A

Markup Pricing

41
Q

Most popular pricing method

A

Markup pricing

42
Q

the amount added to the cost it took to make the product and is the source of a company’s profit

A

markup

43
Q

the company decides on the price that would give back the target rate of return on the investment

A

target-return pricing

44
Q

delivers its promised features and values and the customers perceive the value which justifies the price

A

perceived-value pricing

45
Q
  • where a company optimizes its production system so well that it can produce a product so efficiently that it can offer it at a very low price (while high quality is maintained)
  • made by innnovators
A

value pricing

46
Q

Price adaptation strategies

A
  • geographical pricing
  • price discounts (trade)
  • promotional pricing
  • differentiated pricing
47
Q

the company decides how to price its products to different customers in different locations and countries

A

geographical pricing

48
Q

different price discounts

A
  • discount
  • quantity discount
  • functional discount
  • seasonal discount
49
Q

a price reduction for buyers who pay promptly

A

discount

50
Q

2% discount is given if a drugstore pays its orders within 30 days to the distributor)

A

discount

51
Q

price reduction for buyers who buy more (large volumes)

A

quantity discounts

52
Q

also called trade discount; offered to a buyer (drugstore) that also performs specific functions

A

functional discount

53
Q

a price reduction given for products that are outside peak season

A

seasonal discounts

53
Q

Different types of promotional pricing

A
  • loss leader pricing
  • special customer pricing
  • psychological pricing
53
Q

offering a well-known brand at a cheaper price during to stimulate customer traffic

A

loss-leader pricing

54
Q

offering special prices to “club” members

A

special customer pricing

55
Q

offering a usually high-priced product at a very low price (usually done for near-expired products that are still within acceptable shelf life)

A

psychological pricing

56
Q

price adjustment to accommodate differences in products, customers, and locations

A

differentiated pricing

57
Q

occurs when a company sells a product or service at a two or more prices that do not reflect a proportional difference in costs

A

price discrimination

58
Q

Different types of price discrimination

A
  • customer-segment pricing
  • product form pricing
  • channel pricing
59
Q

offering the same product but at difference prices to different customer segment

A

customer-segment pricing

60
Q

offering same product at different prices as different forms

A

product form pricing

61
Q

offering the same product at different price based on location

A

channel pricing

2nd shift lecs (21 decks)

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