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28 Cards in this Set
- Front
- Back
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Price |
Amount of money charged for a product or service, or the sums of the values that customers exchange for the benefits of having or using the product. |
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Customer value-based pricing |
Setting price based on buyers' perceptions of value rather than on seller's costs. Sets the price ceiling. |
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Good-value pricing |
Offering the right combination of quality and good service at a fair price. |
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Value-added pricing |
Attaching value-added features and services to differentiate a company's offers and charge higher prices. i.e.consumers want value and are willing to pay for it. |
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Cost-based pricing |
Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the effort and risk. Sets the price floor. |
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Cost-plus pricing |
Adding a standard markup to the cost of the product. |
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Competition-based pricing |
Setting prices based on competitor's strategies, costs, prices, and market offerings. |
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Target Costing |
Pricing that starts with an ideal selling price, and then targets costs that will ensure that the price is met. |
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Demand Curve |
Curve showing the number of units the market will buy in a given time period, at different prices that might be charged. |
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Price Elasticity |
Measures the sensitivity of demand to changes in price. |
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Inelastic |
Small change in price, hardly effects demand. |
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Elastic |
Small change in price greatly changes demand. |
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Market-skimming pricing (price skimming) |
Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay higher prices. Fewer but more profitable sales. |
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Market-penetration pricing |
Set low initial price in order to attract a large number of buyers and win a large market share. |
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Product-line pricing |
Setting price steps between various products in a line based on cost differences, customer evaluations on features and competitor prices. |
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Optional-product pricing |
Pricing of optional or accessory products along with a main product. |
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Captive-product pricing |
Setting a price for products that must be used with a main product, such as blades for a razor. |
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By-product pricing |
Setting a price for by-products to make the main products price more competitive. |
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Product bundle pricing |
Combining several products and offering the bundle at a reduced price. |
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Discount |
Price reduction to buyers who pay their bills promptly. |
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Allowances |
Promotional money paid by manufacturers to retailers in return for an agreement to feature the products in some way. |
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Segmented pricing |
Selling a product or service at two or more prices, where the differences in price is not based on differences in cost. |
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Psychological Pricing |
Sellers consider the psychology of the prices and not simply the economics; price is used to say something about the product. |
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Reference prices |
Prices that buyers carry in their minds and refer to when looking at a given product. |
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Promotional pricing |
Temporarily pricing products below the list price and sometimes even below cost to increase short-run sales. |
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Geographic prices |
Setting prices for products located in different parts of the country or world. |
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Dynamic Pricing |
Adjusting prices continually to meet the characteristics and needs of individual customers and situations. |
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International Pricing |
Adjusting prices to meet different conditions and expectations in different world markets. |
