Marketing Chapter 9

Front 1

Firm's marketing objectives
marketing mix strategy
costs

Back 1

Internal factors on pricing

Front 2

nature of market and demand

Back 2

external factor on pricing

Front 3

price basing strategies

Back 3

cost based
buyer based
competition based

Front 4

Product Line Pricing (OCBP)

Back 4

Optional product pricing
captive product pricing
by product pricing
product bundle pricing

Front 5

Discount
segmented
psychological
promotional
geographic
odd-based

Back 5

Price Adjustment Strategies

Front 6

Amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Back 6

price

Front 7

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

Back 7

customer value-based pricing

Front 8

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

Back 8

good-value pricing

Front 9

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

Back 9

value-added pricing

Front 10

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

Back 10

cost-based pricing

Front 11

costs that do not vary with production or sales levels

Back 11

fixed costs

Front 12

costs that vary directly with the level of production

Back 12

variable costs

Front 13

sume of the fixed and variable costs for any given level of production

Back 13

total costs

Front 14

adding a standard markup to the cost of the product

Back 14

cost-plus pricing
(markup pricing)

Front 15

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

Back 15

break-even pricing
(target return pricing)

Front 16

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

Back 16

competition-based pricing

Front 17

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

Back 17

target costing

Front 18

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

Back 18

demand curve

Front 19

a measure of the sensitivity of demand to changes in price

Back 19

price elasticity

Front 20

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; company makes fewer but more profitable sales

Back 20

market-skimming pricing

Front 21

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

Back 21

market-penetration pricing

Front 22

setting the 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 22

product line pricing

Front 23

pricing of optional or accessory products along with a main product

Back 23

optional-product pricing

Front 24

setting a price for products that must be used along with a main product, such as blades for a razor

Back 24

captive-product pricing

Front 25

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

Back 25

by-product pricing

Front 26

combining several products and offering the bundle at a reduced price

Back 26

product bundle pricing

Front 27

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

Back 27

discount

Front 28

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

Back 28

allowance

Front 29

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

Back 29

segmented pricing

Front 30

pricing that considers the psychology of prices and not simply the economics; price is used to say somethin about the product

Back 30

psychological pricing

Front 31

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

Back 31

reference prices

Front 32

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

Back 32

promotional pricing

Front 33

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

Back 33

dynamic pricing