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53 Cards in this Set

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MAJOR PRICING STRATEGIES
1.NEW PRODUCT PRICING STRATEGIES
2.PRODUCT MIX PRICING STRATEGIES
3.PRICE-ADJUSTMENT STRATEGIES
4.PRICE CHANGES
2 NEW PRODUCT PRICING STRATEGIES
1.MARKET-SKIMMING PRICING
2.MARKET-PENETRATION PRICING
MARKET-SKIMMING PRICING
SETTING A HIGH PRICE FOR A NEW PRODUCT TO SKIM REVENUES LAYER BY LAYER FROM THE SEGMENT WILLING TO PAY THE HIGH PRICE
MARKET-SKIMMING CONDITIONS
1.PRODUCT'S QUALITY & IMAGE MUST SUPPORT ITS HIGH PRICE
2.THE COSTS OF PRODUCING A SMALLER VOLUME CANNOT BE SO HIGH THEY CANCEL THE ADVANTAGE OF CHARGING MORE
MARKET-SKIMMING CONDITIONS
1.PRODUCT'S QUALITY & IMAGE MUST SUPPORT ITS HIGH PRICE
2.THE COSTS OF PRODUCING A SMALLER VOLUME CANNOT BE SO HIGH THEY CANCEL THE ADVANTAGE OF CHARGING MORE
MARKET-PENETRATION PRICING
SETTING A LOW PRICE FOR A NEW PRODUCT IN ORDER TO ATTRACT A LARGE # OF BUYERS & A LARGE MARKET SHARE
PRODUCT MIX PRICING
THE FIRM LOOKS FOR A SET OF PRICES THAT MAXIMIZES THE PROFITS ON THE TOTAL PRODUCT MIX
5 PRODUCT MIX PRICING STRATEGIES
1.PRODUCT LINE PRICING
2.OPTIONAL-PRODUCT PRICING
3.CAPTIVE-PRODUCT PRICING
4.BY-PRODUCT PRICING
5.PRODUCT BUNDLE PRICING
PRICE POINTS
PERCEIVED QUALITY DIFFERENCES THAT SUPPORT THE PRICE DIFFERENCES (LOW-, AVERAGE-, & HIGH-)
OPTIONAL-PRODUCT PRICING
THE PRICING OF ACCESSORY PRODUCTS ALONG WITH A MAIN PRODUCT
CAPTIVE-PRODUCT PRICING
SETTING A PRICE FOR PRODUCTS THAT MUST BE USED ALONG W/ A MAIN PRODUCT
2-PART PRICING
CAPTIVE-PRODUCT PRICING IN THE CASE OF SERVICES--THE PRICE IS BROKEN INTO A FIXED FEE PLUS A VARIABLE USAGE RATE
BY-PRODUCT PRICING
SETTING A PRICE FOR BY-PRODUCTS IN ORDER TO MAKE THE MAIN PRODUCT'S PRICE MORE COMPETITIVE
PRODUCT BUNDLE PRICING
COMBINING SEVERAL PRODUCTS & OFFERING THE BUNDLE AT A REDUCED PRICE
6 PRICE-ADJUSTMENT STRATEGIES
1.DISCOUNT & ALLOWANCE PRICING
2.SEGMENTED PRICING
3.PSYCHOLOGICAL PRICING
4.PROMOTIONAL PRICING
5.GEOGRAPHICAL PRICING
6.INTERNATIONAL PRICING
DISCOUNTS & ALLOWANCES
PRICE ADJUSTMENTS
CASH DISCOUNT
A CASH REDUCTION TO BUYERS WHO PAY THEIR BILLS PROMPTLY
QUANTITY DISCOUNT
A PRICE REDUCTION TO BUYERS WHO BUY LARGE VOLUMES
DISCOUNT & ALLOWANCE PRICING
REDUCING PRICES TO REWARD CUSTOMER RESPONSES SUCH AS PAYING EARLY OR PROMOTING THE PRODUCT
SEGMENTED PRICING
ADJUSTING PRICES TO ALLOW FOR DIFFERENCES IN CUSTOMERS, PRODUCTS, OR LOCATIONS
PSYCHOLOGICAL PRICING
ADJUSTING PRICES FOR PSYCHOLOGICAL EFFECT
PROMOTIONAL PRICING
TEMPORARILY REDUCING PRICES TO INCREASE SHORT-RUN SALES
GEOGRAPHICAL PRICING
ADJUSTING PRICES TO ACCOUNT FOR THE GEOGRAPHIC LOCATION OF CUSTOMERS
INTERNATIONAL PRICING
ADJUSTING PRICES FOR INTERNATIONAL MARKETS
FUNCTIONAL DISCOUNT (TRADE DISCOUNT)
PRICE REDUCTION OFFERED BY THE SELLER TO TRADE CHANNEL MEMBERS WHO PERFORM CERTAIN FUNCTIONS SUCH AS SELLING, STORING, & RECORD KEEPING
SEASONAL DISCOUNT
PRICE REDUCTION TO BUYERS WHO BUY MERCHANDISE OR SERVICES OUT OF SEASON
ALLOWANCES
PROMOTIONAL MONEY PAID BY MANUFACTURERS TO RETAILERS IN RETURN FOR AN AGREEMENT TO FEATURE THE MANUFACTURERS PRODUCTS IN SOME WAY
TRADE-IN ALLOWANCES
PRICE REDUCTIONS GIVEN FOR TURNING IN AN OLD ITEM WHEN BUYING A NEW ONE
PROMOTIONAL ALLOWANCES
PAYMENTS OR PRICE REDUCTIONS TO REWARD DEALERS FOR PARTICIPATING IN ADS & SALES SUPPORT PROGRAMS
SEGMENTED PRICING
SELLING A PRODUCT OR SERVICE AT 2 OR MORE PRICES, WHERE THE DIFFERENCE IN PRICES IS NOT BASED ON DIFFERENCES IN COSTS
FORMS OF SEGMENTED PRICING
1.CUSTOMER-SEGMENT PRICING
2.PRODUCT-FORM PRICING
3.LOCATION PRICING
4.TIME PRICING
PSYCHOLOGICAL PRICING
PRICING APPROACH THAT CONSIDERS THE PSYCHOLOGY OF PRICES & NOT SIMPLY THE ECONOMICS, THE PRICE IS USED TO SAY SOMETHING ABOUT THE PRODUCT
REFERENCE PRICING
PRICES THAT BUYERS CARRY IN THEIR MINDS & REFER TO WHEN THEY LOOK AT A GIVEN PRODUCT
PROMOTIONAL PRICING
TEMPORARILY PRICING PRODUCTS BELOW THE LIST PRICE TO INCREASE SHORT-RUN SALES
GEOGRAPHICAL PRICING
DECIDING HOW TO PRICE ITS PRODUCTS FOR CUSTOMERS LOCATED IN DIFFERENT PARTS OF THE COUNTRY OR WORLD
5 GEOGRAPHICAL PRICING STRATEGIES
1.FOB-ORIGIN PRICING
2.UNIFORM-DELIVERED PRICING
3.ZONE PRICING
4.BASING-POINT PRICING
5.FREIGHT-ABSORPTION PRICING
FOB-ORIGIN PRICING
GEOGRAPHICAL PRICING STRATEGY IN WHICH GOODS R PLACED FREE ON BOARD A CARRIER, THE CUSTOMER PAYS THE FREIGHT FROM THE FACTORY TO THE DESTINATION
UNIFORM-DELIVERED PRICING
GEOGRAPHICAL PRICING STRATEGY IN WHICH THE COMPANY CHARGES THE SAME PRICE PLUS FREIGHT TO ALL CUSTOMERS REGARDLESS OF THEIR LOCATION
ZONE PRICING
GEOGRAPHICAL PRICING STRATEGY IN WHICH THE COMPANY SETS UP 2 OR MORE ZONES: ALL CUSTOMERS WITHIN A ZONE PAY THE SAME TOTAL PRICE, THE MORE DISTANT THE ZONE THE HIGHER THE PRICE
BASING POINT PRICING
GEOGRAPHICAL PRICING STRATEGY IN WHICH THE SELLER DESIGNATES SOME CITY AS A BASING POINT & CHARGES ALL CUSTOMERS THE FREIGHT COST FROM THAT CITY TO THE CUSTOMER LOCATION, REGARDLESS OF THE CITY FROM WHICH THE GOODS R ACTUALLY SHIPPED
FACTORS OF INTERNATIONAL PRICING
1.ECONOMIC CONDITIONS
2.COMPETITIVE SITUATIONS
3.LAWS & REGULATIONS
4.DEVELOPMENT OF THE WHOLESALING & RETAILING SYSTEM
PRICE ESCALATION
GOODS THAT R RELATIVELY INEXPENSIVE AT HOME MAY CARRY HIGHER PRICE TAGS IN OTHER COUNTRIES
2 PRICE CHANGES
1.PRICE CUTS
2.PRICE CHANGES
2 REASONS FOR PRICE CUTS
1.EXCESS CAPACITY
2.FALLING MARKET SHARE IN THE FACE OF STRONG COMPETITION
PRICE FIXING
PRICE COLLUSION
PREDATORY PRICING
SELLING BELOW COST WITH THE INTENTION OF PUNISHING A COMPETITOR OR GAINING HIGHER LONG-RUN PROFITS BY PUTTING COMPETITORS OUT OF BUSINESS
RESALE PRICE MAINTENANCE
WHEN A MANUFACTURER REQUIRES DEALERS TO CHARGE A SPECIFIED RETAIL PRICE FOR ITS PRODUCT
DECEPTIVE PRICING
WHEN A SELLER STATES PRICES OR PRICE SAVINGS THAT MISLEAD CONSUMERS OR ARE NOT ACTUALLY AVAILABLE TO CONSUMERS
PRICE CONFUSION
WHEN FIRMS EMPLOY PRICING METHODS THAT MAKE IT DIFFICULT FOR CONSUMERS TO UNDERSTAND JUST WHAT PRICE THEY ARE REALLY PAYING
FORMS OF PROMOTIONAL PRICING
1.LOSS LEADERS
2.SPECIAL-EVENT PRICING
3.CASH REBATES
4.LOW-INTEREST FINANCING, LONGER WARRANTIES, OR FREE MAINTENANCE
5.DISCOUNTS
FREIGHT-ABSORPTION PRICING
GEOGRAPHICAL PRICING STRATEGY IN WHICH THE SELLER ABSORBS ALL OR PART OF THE ACTUAL FREIGHT CHARGES IN ORDER TO GET THE DESIRED BUSINESS
MARKET-PENETRATION PRICING CONDITIONS
1.MARKET MUST BE HIGHLY PRICE SENSITIVE SO THAT A LOW PRICE PRODUCES MORE MARKET GROWTH
2.PRODUCTION & DISTRIBUTION COSTS MUST FALL AS SALES VOLUME INCREASES
3.LOW PRICE MUST HELP KEEP OUT THE COMPETITION & THE PRICER MUST MAINTAIN ITS LOW-PRICE POSITION
PRODUCT LINE PRICING
SETTING THE PRICE STEPS BETWEEN VARIOUS PRODUCTS IN A PRODUCT LINE BASED ON COST DIFFERENCES BETWEEN THE PRODUCTS, CUSTOMER EVALUTIONS, & COMPETITOR PRICES