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5 Cards in this Set
- Front
- Back
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types of demand-oriented pricing methods & purpose
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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 |
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4 approaches for determining set price
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1- demand oriented
2- cost oriented 3- profit oriented 4- competition oriented |
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3 methods for cost-oriented pricing
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1- standard markup
2- cost plus 3- experience curve |
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experience curve pricing
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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
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2 types of cost plus pricing
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1- fixed cost
2- percentage of cost |
