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12 Cards in this Set
- Front
- Back
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What is Market-skimming?
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Pricing is a strategy with high initial prices to “skim” revenue layers from the market
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What is Market-penetration pricing
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sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
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What is Product line pricing?
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Takes into account the cost differences between products in the line, customer evaluation of their features, and competitors’ prices
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What is Product Line Length?
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Example:
Proctor and Gamble has over 5 different detergent brands that they sell with different features and prices. |
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Product Mix Width?
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Example:
Proctor and Gamble has many products in different markets such as detergent, toothpaste, diapers, bar soap, toilet paper |
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What is Optional-product pricing?
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Takes into account optional or accessory products along with the main product
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What is Captive-product pricing?
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Involves products that must be used along with the main product
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What is Product bundle pricing?
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Combines several products at a reduced price
(Comcast, CenturyLink) |
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What is Discount and Allowance pricing?
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Reduces prices to reward customer responses such as paying early or promoting the product
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What is Psychological pricing?
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What is occurs when sellers consider the psychology of prices and not simply the economics
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Odd-even pricing?
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Form of psychological pricing that suggests buyers are more sensitive to certain ending digits.
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What is promotional pricing?
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Is when prices are temporarily priced below list price or cost to increase demand
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