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29 Cards in this Set
- Front
- Back
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what are the four common approaches to find a price level?
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1. demand oriented
2. cost-oriented 3. Profit oriented 4. competition-oriented approach |
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Under demand oriented pricing, what is skimming?
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setting the highest inital price that customers really desiring the product are willing to pay...and this is good if there are
1. enough prospectives 2. not attract competitors 3. minor effect when price is lowered 4. customers see high price as high quality |
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Under demand oriented pricing, what is penetration pricing?
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opposite of skimming...set a low price to new product to appeal to the masses...nintendo used it when introducing the Wii...
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Under demand oriented pricing, what is prestige pricing?
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It is setting a high price so that quality or status consious consumers are attracted to the product and buy it..like cartier...
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Under demand oriented pricing, what is odd-even pricing?
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When they set prices a few dollars or cents under an even number.
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Under demand oriented pricing, what is Target pricing?
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work backwards from what the ultimate consumer would be willing to pay for a product...what canon uses
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Under demand oriented pricing, what is Bundle pricing?
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marketing of two or more products in a single package price ex: Delta airline
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Under demand oriented pricing, what is Yeild Management Pricing
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Charging of different prices to maximize revenue for a set amount of capacity at any given time. ex: airplane ticket
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Under Cost-oriented Pricing appriach, what is standard markup pricing?
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adding a fixed percentage to the cost of all items in a specific product class.
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Under Cost-oriented Pricing approach, what is cost-plus pricing
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Summing the total unit cost of providing a product or a service and adding a specific amount to the cost to arrive at a price; usual for businesses
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what are the four common approaches to find a price level?
|
1. demand oriented
2. cost-oriented 3. Profit oriented 4. competition-oriented approach |
|
|
Under demand oriented pricing, what is skimming?
|
setting the highest inital price that customers really desiring the product are willing to pay...and this is good if there are
1. enough prospectives 2. not attract competitors 3. minor effect when price is lowered 4. customers see high price as high quality |
|
|
Under demand oriented pricing, what is penetration pricing?
|
opposite of skimming...set a low price to new product to appeal to the masses...nintendo used it when introducing the Wii...
|
|
|
Under demand oriented pricing, what is prestige pricing?
|
It is setting a high price so that quality or status consious consumers are attracted to the product and buy it..like cartier...
|
|
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Under demand oriented pricing, what is odd-even pricing?
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When they set prices a few dollars or cents under an even number.
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Under demand oriented pricing, what is Target pricing?
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work backwards from what the ultimate consumer would be willing to pay for a product...what canon uses
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Under demand oriented pricing, what is Bundle pricing?
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marketing of two or more products in a single package price ex: Delta airline
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Under demand oriented pricing, what is Yeild Management Pricing
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Charging of different prices to maximize revenue for a set amount of capacity at any given time. ex: airplane ticket
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Under Cost-oriented Pricing appriach, what is standard markup pricing?
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adding a fixed percentage to the cost of all items in a specific product class.
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Under Cost-oriented Pricing approach, what is cost-plus pricing
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Summing the total unit cost of providing a product or a service and adding a specific amount to the cost to arrive at a price; usual for businesses
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what law is price fixing illegal under?
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Sherman Act
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What law prohibits price discrimination?
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Robinson-Patman Act
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What law prohibits deceptive pricing?
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Federal Trade Commission.
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What is bait and switch?
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A deceptive pricing tactic where a firm offers a low price and then once in the store, they are persuaded to but a higher one
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What is predatory pricing?
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Type of pricing that tries to drive competitors out of business.
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What are the three steps involved in setting a final price?
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1. Select an approximate price level
2. Set the list or quoted price 3. Make special adjustments to the list or quoted price |
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what is a discount?
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reduction from list price that a seller gives to the buyer as a reward
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What is an allowance
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reduction from list or quoted prices to buyers for performing some activity
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What is FOB origin pricing?
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FOB is free on board. meaning, the seller pays the cost of loading the product onto the vehicle that is used.
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