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20 Cards in this Set

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