Chapter 22-Setting Prices

Front 1

Pricing an item in a product line low with the intention of selling a higher-priced item in the line

Back 1

baiting prices

Front 2

Packaging together two or more complementary products and selling them at a single price

Back 2

bundle pricing

Front 3

Pricing the basic product in a product line low while pricing related items higher

Back 3

captive pricing

Front 4

Setting a price at a specific level and comparing it with a higher price

Back 4

comparision discounting

Front 5

Pricing influenced primarily by competitors' prices

Back 5

competition-based pricing

Front 6

Adding a dollar amount or percentage to the cost of the product

Back 6

cost-based pricing

Front 7

Adding a specified dollar amount or percentage to the seller's cost

Back 7

cost-plus pricing

Front 8

Pricing on the basis of tradition

Back 8

customary pricing

Front 9

A specialized audit in which specific consumer service activities are analyzed and service goals and standards are compared to actual performance

Back 9

customer service audit

Front 10

Pricing based on the level of demand for the product

Back 10

demand-based pricing

Front 11

Charging different prices to different buyers for the same quality and quantity of product

Back 11

differental pricing

Front 12

An approach to determining marketing costs in which cost analysis includes variable costs and traceable common costs but not nontraceable common costs

Back 12

direct cost approach

Front 13

Pricing products low on a consistent basis

Back 13

everyday low pricing EDLP

Front 14

An approach to determining marketing costs in which cost analysis includes variable, traceable common costs and nontraceable common costs

Back 14

full-cost approach

Front 15

A systematic examination of the marketing group's objectives, strategies, organization, and performance

Back 15

marketing audit

Front 16

Breaking down and classifying costs to determine which are associated with specific marketing activities

Back 16

marketing cost analysis

Front 17

Adding to the cost of a product a predetermined percentage of that cost

Back 17

mark-up costing

Front 18

Packaging together two or more identical products and selling them at a single price

Back 18

multiple unit pricing

Front 19

Establishing a final price through bargaining between seller and customer

Back 19

Negotiated pricing

Front 20

Costs that cannot be assigned to any specific function according to any logical criteria and thus are assignable only on an arbitrary basis

Back 20

Nontraceable common costs

Front 21

Ending the price with certain numbers to influence buyers' perceptions of the price or product

Back 21

odd-even pricing

Front 22

Setting prices below those of competing brands to penetrate a market and gain a significant market share quickly

Back 22

penetration pricing

Front 23

Temporary reduction of prices on a patterned or systematic basis

Back 23

periodic discounting

Front 24

Pricing the highest-quality or most versatile products higher than other models in the product line

Back 24

premium pricing

Front 25

Setting prices at an artificially high level to convey a prestige or a quality image

Back 25

Prestige pricing

Front 26

A product priced below the usual markup, near cost, or below cost

Back 26

price leader

Front 27

Setting a limited number of prices for selected groups or lines of merchandise

Back 27

price lining

Front 28

Charging the highest possible price that buyers who most desire the product will pay

Back 28

price skimming

Front 29

Goals that describe what a firm wants to achieve through pricing

Back 29

pricing objective

Front 30

Establishing and adjusting prices of multiple products within a product line

Back 30

product-line pricing

Front 31

Fees set by people with great skill or experience in a particular field

Back 31

professional pricing

Front 32

Pricing that attempts to influence a customer's perception of price to make a product's price more attractive

Back 32

Psychological pricing

Front 33

Temporary reduction of prices on an unsystematic basis

Back 33

random discounting

Front 34

Pricing a product at a moderate level and positioning it next to a more expensive model or brand

Back 34

reference pricing

Front 35

The use of sales figures to evaluate a firm's current performance

Back 35

sales analysis

Front 36

Setting one price for the primary target market and a different price for another market

Back 36

secondary-market pricing

Front 37

Advertised sales or price cutting linked to a holiday, a season, or an event

Back 37

special-event pricing

Front 38

Costs that can be allocated indirectly, using one or several criteria, to the functions they support

Back 38

traceable common costs