Marketing An Intro Ch 9

Front 1

Price

Back 1

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

Front 2

Customer value-based pricing

Back 2

Setting price based on buyers' perceptions of value rather than on the seller's cost.

Front 3

Good-value pricing

Back 3

Offering 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 company's offers while charging higher prices.

Front 5

Cost-based pricing

Back 5

Setting prices based on the costs for producting, 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 the fixed and variable costs for any given level of production.

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

Competition-based pricing

Back 11

Setting prices based on competitors' strategies, prices, costs, and market offerings.

Front 12

Target Costing

Back 12

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

Front 13

Pure competition

Back 13

Market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial security.

Front 14

Monopolistic competition

Back 14

Market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Front 15

Oligopolistic competition

Back 15

Market consists of only few larger sellers.

Front 16

Pure monopoly

Back 16

Market is dominated by one seller.

Front 17

Demand Curve

Back 17

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

Front 18

Price elasticity

Back 18

A measure of the sensitivity of demand to changes in price.

Front 19

Market skimming pricing

Back 19

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 20

Market penetration pricing

Back 20

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

Front 21

Product Line Pricing

Back 21

Setting prices across an entire product line.

Front 22

Optional-product pricing

Back 22

The pricing of optional or accessory products along with a main product.

Front 23

Captive-product pricing

Back 23

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

Front 24

By-product pricing

Back 24

Setting a price for by-products in order to make the main product's price more competitive.

Front 25

Product bundle pricing

Back 25

Combining serveral products and offering the bundle at a reduced price.

Front 26

Discount

Back 26

A straight reduction in price on purchases under stated conditions or during a stated period of time or in larger quantities.

Front 27

Allowance

Back 27

Promotional Money paid by manufacturers to retailers in return for an agreeement to feature the manufacturer's products in some way.

Front 28

Segmented pricing

Back 28

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

Front 29

Psychological Pricing

Back 29

A pricing approach that considers the psychology of prices and not simply the economics, the price is used to say something about the product.

Front 30

Reference Pricing

Back 30

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

Front 31

Promotional Pricing

Back 31

Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.

Front 32

Geographical Pricing

Back 32

Setting price based on the buyer's geographic location.

Front 33

Free on Board - Origin pricing.

Back 33

Title transfers at time of shipping. The book says customers pay shipping but that isn't necessarily true.

Front 34

Uniform delivered pricing

Back 34

Firm charges a uniform shipping price. Notice that the book says nothing about transfer of title.

Front 35

Zone pricing

Back 35

Shipping costs are set according to zones.

Front 36

Basing point pricing

Back 36

Shipping costs are charge from a base city regardless of where the true shipping point was.

Front 37

Freight absorption pricing

Back 37

Seller pays the freight charges.

Front 38

Dynamic Pricing

Back 38

Adjusting prices continually to meet the characsteristics and needs of individual customers and situations.

Front 39

Predatory Pricing

Back 39

Setting the price below/near cost to damage a competitor.

Front 40

Price Discrimination

Back 40

Charging different prices with no supporting argument (to a retailer or consumer)

Front 41

Retail Price Maintenance

Back 41

a manufacture cannot require to charge a specified retail price for its product.