Marketing Chapter 9

Front 1

The amount of money charged for a produce/service
The sum of the values that customers exchange for the benefits of having or using the produce/service

Back 1

Price

Front 2

Setting prices based on buyers' perceptions of value rather than on sellers' cost.

Back 2

customer value-based pricing

Front 3

offering just the right combination of quality and good service at a fair price

Back 3

good-value pricing

Front 4

attaching value-added features and services to differentiate a company's offers and charging higher prices

Back 4

value-added pricing

Front 5

setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk

Back 5

cost-based pricing

Front 6

costs that do not vary with production or sales level

Back 6

fixed (overhead) costs

Front 7

costs that vary directly with the level of production

Back 7

variable costs

Front 8

fixed + variable costs at any level of production

Back 8

total costs

Front 9

adding a standard markup to the cost of the product

Back 9

cost-plus pricing (markup pricing)

Front 10

setting price to break even on the costs of making and marketing a product, or setting price to make a target return

Back 10

break-even pricing (target return pricing)

Front 11

setting prices based on competitors' strategies, prices, costs, and market offerings

Back 11

competition-based pricing

Front 12

pricing that starts with an ideal selling price, and targets costs that will ensure that the price is met

Back 12

target costing

Front 13

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

Back 13

demand curve

Front 14

a measure of the sensitivity of demand to changes in price

Back 14

price elasticity

Front 15

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 and more profitable sales)

Back 15

market-skimming pricing

Front 16

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

Back 16

market-penetration pricing

Front 17

setting prices steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.

Back 17

product line pricing

Front 18

the pricing of optional or accessory products along with a main product

Back 18

optional-product pricing

Front 19

setting a price for products that must be used along with a main product (games for videogame console)

Back 19

captive-product pricing

Front 20

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

Back 20

by-product pricing

Front 21

combining several products and offering the bundle at a reduced price

Back 21

product bundle pricing

Front 22

straight reduction in price on purchases during a stated period of time or of larger quantities

Back 22

discount

Front 23

promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way

Back 23

allowance

Front 24

selling a product/service at 2+ prices, where the difference in prices is not based on differences in costs

Back 24

segmented pricing

Front 25

pricing that considers the psychology of prices and not simply the economics (price is used to say something about the product)

Back 25

psychological pricing

Front 26

prices that buyers carry in their minds and refer to when they look a give product

Back 26

reference prices

Front 27

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

Back 27

promotional pricing

Front 28

adjusting prices continually to meet the characteristics and needs of individual customers and situations

Back 28

dynamic pricing