Mkt Ch 14

Front 1

4 approaches for setting price level and methods of each

Back 1

1) demand oriented (customer wants and preferences
2)cost oriented (stresses cost side)
3) profit oriented - (balance both revenues and costs)
4)competition oriented (stress what "market" is doing)

Front 2

skimming

Back 2

setting the highest initial price that customers really desiring the product are willing to pay

Front 3

penetration

Back 3

setting a low initial price on a new product to appeal immediately to the mass market

Front 4

one price policy

Back 4

setting one price for all buyers of a product or service

Front 5

flexible price policy

Back 5

involves setting different prices for products and services depending on individual buyers and purchase situations

Front 6

product line pricing

Back 6

the setting of prices for all items in a product line

Front 7

types of adjustment to quoted price

Back 7

1) discounts-quantity, seasonal, tade, cash
2)allowances-reductions from list prices to buyers performing some activity
3)geographical-prices reflect the cost of transportation of the products from seller to buyer

Front 8

price fixing

Back 8

a cconspiracy among firms to set prices for a product

Front 9

price discrimination

Back 9

the practice of chargin different prices to different buyers for goods like grade and quality

Front 10

deceptive pricing

Back 10

the price deals that mislead customers.

Front 11

geographical pricing

Back 11

FOB and feight allowed pricing are legal

Front 12

predatory pricing

Back 12

the practice of charging a very low price for a product with the intent of driving competitors out of business