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5 Cards in this Set

  • Front
  • Back
types of demand-oriented pricing methods & purpose
skimming- start high as demand lowers skim price
penetration- start out low w/ high expected demand
odd-even- put price a few cents/dollars below even #
yield management- charging of different prices on same product to maximize revenue
price lining- company w/ prod line that sets different prices for the products
prestige- set high & keep high for quality conscious buyers
target- manufacturer deliberatly works backwards to set right price for ultimate consumer
bundle- placing similar products together for a single cheaper packaged price
4 approaches for determining set price
1- demand oriented
2- cost oriented
3- profit oriented
4- competition oriented
3 methods for cost-oriented pricing
1- standard markup
2- cost plus
3- experience curve
experience curve pricing
based on consumer learning effect in which the unit cost of many products declines by 10-30 percent each time a firms experience selling them doubles
2 types of cost plus pricing
1- fixed cost
2- percentage of cost