Chapter 9 Marketing: Intro

Front 1

price

Back 1

the amount of money charged for product or service, or the sum of all the values that customers give up in order to gain the benefit of having or using a product or service

Front 2

value-based pricing

Back 2

setting price based on buyers perceptions of value rather than on the sellers cost

Front 3

good-value pricing

Back 3

offerin just the right combination of quality and good service at a fair price

Front 4

value-added pricing

Back 4

attaching value-added features and services to differentiate a market offering and support higher prices, rather than cutting prices to match competitors

Front 5

cost-based pricing

Back 5

setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk.

Front 6

fixed costs

Back 6

costs that do not vary with production or sales level

Front 7

variable costs

Back 7

costs that vary directly with the level of production

Front 8

total costs

Back 8

the sum of fixed and variable cost

Front 9

cost-plus pricing

Back 9

adding a standard markup to the cost of the product

Front 10

break-even pricing (Target profit pricing)

Back 10

setting price to break even on the costs of making and marketing a product; or setting price to make a target profit

Front 11

target costing

Back 11

pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

Front 12

demand curve

Back 12

a curve that shows the number of units the market will buy in given time period, at different prices that might be charged

Front 13

price elasticity

Back 13

a measure of the sensitivity of demand to changes in the price

Front 14

marketing-skimming pricing (price skimming)

Back 14

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

Front 15

market-penetration pricing

Back 15

setting a low price for a new product in order to attract a large number of buyers and a large market share

Front 16

product line pricing

Back 16

setting the price steps between products in a product line based on cost differences and customer perceptions of the value

Front 17

optional-product pricing

Back 17

the pricing of optional or accessory products along with a main product

Front 18

captive-product pricing

Back 18

setting a price for products that must be used along with a main product

Front 19

by-product pricing

Back 19

setting a price for by-products in order to make the main products price more competitive

Front 20

product bundle pricing

Back 20

combining serveral products and offering the bundle at a reduced price

Front 21

discount

Back 21

a straight reduction in price on purchases under stated considionts or during a stated period of time

Front 22

allowance

Back 22

promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's product in some way

Front 23

segmented pricing

Back 23

selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.

Front 24

psychological pricing

Back 24

a pricing approach that consideres the psychology of prices and not simply the economics; the price us used to say something about the product

Front 25

reference prices

Back 25

price that buyers carry in their minds and refer to when they look at a given product

Front 26

promotional pricing

Back 26

temporarily pricing products below the list price, and sometimes even below costs, to increase short-run sales

Front 27

geographical pricing

Back 27

setting price based on the buyers geographic locatino

Front 28

dynamic pricing

Back 28

adjusting prices continually to meet the characterisitics and needs of individual customers and situations.