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20 Cards in this Set
- Front
- Back
Market-Skimming Pricing
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set a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; fewer but more profitable sales.
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Market-Penetration Pricing
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set a low price for a new product in order to attract a large number of buyers and a large market share.
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Product Line Pricing
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Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features and competitors’ prices.
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Optional-product pricing
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Pricing optional or accessory products along with a main product
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Captive Product Pricing
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Setting a price for products that must be used along with a main product, such as printer cartridges, blades for razors, etc
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By-Product Pricing
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setting a price for (selling) by-products in order to make the main product’s price more competitive
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Product-bundle pricing
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Combining several products and offering them at a lower price. Promotes sales of products consumers might not otherwise buy
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Discount
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Straight reduction in price on purchases during a stated period of time.
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Allowance
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Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.
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Segmented Pricing (aka. revenue management or yield management)
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charging 2 or more prices that aren’t due to cost. Exploits differences in customers, products, times/seasons, or locations.
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Psychological Pricing
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pricing that considers psychology, not just economics. Price is used to say something about the product
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Cash discount
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discount for prompt payment
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Functional Discount or Trade Discount
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Discount given to channel partners in exchange for performing certain functions like selling, storing and record keeping
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Reference Prices
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Prices that buyers carry in their minds and refer to when they look at a given product.
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Promotional Pricing
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Temporarily decreasing prices to increase short run sales. Creates excitement and urgency.
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FOB-origin pricing
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customer pays shipping from factory (Free on board)
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Uniform-delivered pricing
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charge same shipping price to any destination, spread cost differences evenly across customers
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Zone Pricing
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do uniform pricing within different zones
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Basing-Point pricing
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pick a city other than the location of the factory as the place from which the customer pays shipping.
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Freight Absorption
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“Free” shipping. Get more business by eating the shipping costs.
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