Ba 390 Quiz 6

Front 1

two types of new product pricing strategies?

Back 1

market skimming and market penetration

Front 2

Whats market skimming?

Back 2

charge a high price initialy to skim revenue layers from the market

Front 3

4 things that must take place for market skimming to work?

Back 3

product quality must be high to support price, demand must exist, cost less than price, and no competitor market entry

Front 4

whats market penetration

Back 4

firm charges low initial price to attract a large number of buyers quickly

Front 5

3 requirements for market penetration

Back 5

must be a price sensitive market, cost of production and distribution must fall when producing high volumes, and low prices must eliminate competition

Front 6

5 product mix pricing strategies?bppoc

Back 6

by product pricing, product bundle pricing, product line pricing, optional product pricing, and captive product pricing

Front 7

This is when you set price steps between product line members, give example

Back 7

product line pricing, good better best

Front 8

Pricing options or accessories along with the main product

Back 8

optional product pricing, like navigation

Front 9

Setting a price for products that must be used with the main product

Back 9

captive product pricing

Front 10

Seeking a market for by-products of production to make the price of the main products more competitive

Back 10

by product pricing, wood chips

Front 11

offering combinations of products at a reduced price

Back 11

product bundling pricing

Front 12

what two part pricing?

Back 12

breaking the price into fixed fees and variable fees, cell phone with internet

Front 13

This type of price adjustment will reduce prices to reward preferred customer responses

Back 13

discount and allowance pricing

Front 14

whats discount pricing 2 examples

Back 14

reduction of price, cash discount for paying promptly, or quantity discount for buying in volume

Front 15

Whats allowance pricing and example

Back 15

cash back in exchange for something of value, trade in allowance for cars

Front 16

Selling a product at different prices to different segments even though product costs are the same

Back 16

segmented pricing

Front 17

3 things that are required for segmented pricing to be effective

Back 17

market must be segmentable, segments must show different demand, and different pricing reflect different precieved values

Front 18

Considering the psychology of prices in addition to the economics; price signals something about the product

Back 18

psychological pricing

Front 19

Whats a reference price, wheres it used and what 3 things shape it

Back 19

price that buyer has in there mind, during psychological pricing, knowledge of current prices, memories of past prices, and evaluation of the buying situation

Front 20

When prices are temporarily priced belwo list price or cost in order to increase sales

Back 20

promotional pricing

Front 21

what are loss leaders

Back 21

products sold below cost to bring people into store

Front 22

3 ways to reduce long term pricing

Back 22

low interest finance, longer warrantees, and free maintenance

Front 23

what the risk of promotional pricing

Back 23

frequent use can create deal prone customers who wait for a sale and avoid buying regular prices

Front 24

This is setting prices for customers in different parts of the country or world

Back 24

geographical pricing

Front 25

same price plus freight to all customers, regardless of location

Back 25

uniformed delivered price

Front 26

customers within a given zone pay a single total price

Back 26

zone pricing

Front 27

customers pay freight cost from base point city to the customer location

Back 27

basing point pricing

Front 28

when prices are adjusted continually to meet the characteristics and needs of the individual custoemr

Back 28

dynamic pricing, airplanes

Front 29

prices are set in a specific country based on country specific factors

Back 29

international pricing

Front 30

2 reasons why price cuts occur?

Back 30

excess capacity, desire to increase market share

Front 31

selling below cost with the intention of punishing a comptetitor or putting them out of business

Back 31

predatory pricing

Front 32

sellers collude with competitiors to set prices

Back 32

price fixing

Front 33

4 solutions to competitors prices change

Back 33

match price, raise precieved value, improve quality, or launch lower price brand

Front 34

2 reasons for price cuts

Back 34

excess capacity, desire to increase market share

Front 35

3 reasons for prices increase

Back 35

cost inflation, increased demand, and lack of supply

Front 36

a set of interdependent organizations that help make a product or service available for ue or consumption by the consumer

Back 36

marketing channel, or distribution channel

Front 37

Why do companies use distribution channels?

Back 37

it affects everything in the entire marketing decision.

Front 38

what do distribution channels do when talking about promotion

Back 38

developing and spreading persuasive communications about an offer

Front 39

finding and communicating with prospective buyers

Back 39

contact

Front 40

shaping and fitting the offer to the buer's needs, including activities such as manufacturing, grading, assembling, and packaging

Back 40

matching

Front 41

transporting and storing goods?

Back 41

physical distribution

Front 42

4 channel functions

Back 42

promotion, contact, matching, and physical distribution.

Front 43

A marketing channel that has no intermediary levels?

Back 43

direct marketing channel

Front 44

when members at different levels of a channel work together in a unified way to accomplish the work of the channel

Back 44

vertical marketing system

Front 45

a channel containing one or more intermediary levels?

Back 45

indirect marketing channel

Front 46

conflicts between different levels of the same channel

Back 46

vertical conflict

Front 47

firms at the same level of the channel that has conflict

Back 47

horizontal conflict

Front 48

a vertical marketing system that combines successive stages of production and distribution under single ownership

Back 48

corporate vertical marketing system

Front 49

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more sales

Back 49

contractual vms

Front 50

a vertical marketing system that coordinates successive stage of production and distribution, through the size and power of one of the parties

Back 50

administered vms

Front 51

managing upstream and downstream value added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Back 51

supply chain management

Front 52

4 primary supply chain management functions

Back 52

suppliers company resellers and customers

Front 53

a large highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

Back 53

distribution center