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38 Cards in this Set

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  • Back
Pricing an item in a product line low with the intention of selling a higher-priced item in the line
baiting prices
Packaging together two or more complementary products and selling them at a single price
bundle pricing
Pricing the basic product in a product line low while pricing related items higher
captive pricing
Setting a price at a specific level and comparing it with a higher price
comparision discounting
Pricing influenced primarily by competitors' prices
competition-based pricing
Adding a dollar amount or percentage to the cost of the product
cost-based pricing
Adding a specified dollar amount or percentage to the seller's cost
cost-plus pricing
Pricing on the basis of tradition
customary pricing
A specialized audit in which specific consumer service activities are analyzed and service goals and standards are compared to actual performance
customer service audit
Pricing based on the level of demand for the product
demand-based pricing
Charging different prices to different buyers for the same quality and quantity of product
differental pricing
An approach to determining marketing costs in which cost analysis includes variable costs and traceable common costs but not nontraceable common costs
direct cost approach
Pricing products low on a consistent basis
everyday low pricing EDLP
An approach to determining marketing costs in which cost analysis includes variable, traceable common costs and nontraceable common costs
full-cost approach
A systematic examination of the marketing group's objectives, strategies, organization, and performance
marketing audit
Breaking down and classifying costs to determine which are associated with specific marketing activities
marketing cost analysis
Adding to the cost of a product a predetermined percentage of that cost
mark-up costing
Packaging together two or more identical products and selling them at a single price
multiple unit pricing
Establishing a final price through bargaining between seller and customer
Negotiated pricing
Costs that cannot be assigned to any specific function according to any logical criteria and thus are assignable only on an arbitrary basis
Nontraceable common costs
Ending the price with certain numbers to influence buyers' perceptions of the price or product
odd-even pricing
Setting prices below those of competing brands to penetrate a market and gain a significant market share quickly
penetration pricing
Temporary reduction of prices on a patterned or systematic basis
periodic discounting
Pricing the highest-quality or most versatile products higher than other models in the product line
premium pricing
Setting prices at an artificially high level to convey a prestige or a quality image
Prestige pricing
A product priced below the usual markup, near cost, or below cost
price leader
Setting a limited number of prices for selected groups or lines of merchandise
price lining
Charging the highest possible price that buyers who most desire the product will pay
price skimming
Goals that describe what a firm wants to achieve through pricing
pricing objective
Establishing and adjusting prices of multiple products within a product line
product-line pricing
Fees set by people with great skill or experience in a particular field
professional pricing
Pricing that attempts to influence a customer's perception of price to make a product's price more attractive
Psychological pricing
Temporary reduction of prices on an unsystematic basis
random discounting
Pricing a product at a moderate level and positioning it next to a more expensive model or brand
reference pricing
The use of sales figures to evaluate a firm's current performance
sales analysis
Setting one price for the primary target market and a different price for another market
secondary-market pricing
Advertised sales or price cutting linked to a holiday, a season, or an event
special-event pricing
Costs that can be allocated indirectly, using one or several criteria, to the functions they support
traceable common costs