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16 Cards in this Set
- Front
- Back
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What does pricing do?
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impacts possession utility directly, but also communicates information about form, time, and place utilities.
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Price is an avenue for what?
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recovering costs
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Price is a source of what?
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competitive advantage
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From a marketing perspective what does pricing help?
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establish value, and achieve desired marketing position.
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The total price concept recognizes what?
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that the price of an object reflects more than just monetary costs, but also effort, time, and trade offs with respect to other products.
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What five things is priced influenced by?
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1. market factors
2. cost factors 3. financial factors 4. legal factors 5. customer factors |
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What are the four basic price decisions?
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1. objectives
2. orientation 3. strategy 4. tactics |
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What is the purpose of pricing objectives?
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to specify the overall impact the price of the product or service will have on the firm’s strategic objectives and positioning
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What are the four options for pricing objectives?
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1. profit
2. volume 3. competitive 4. relationship |
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How is an option for pricing objectives selected?
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its based on the criterion of the corporate objective
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What does the price orientation specify?
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the discipline or theoretical base that will be used to actually calculate the specific price that will be assigned to a product or service
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What are the three price orientation options?
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1. cost based (value calculated at end)
2. demand based (value not calculated) 3. value based (value calculated at beginning). |
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What does price strategies specify?
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how prices will be generally initiated and managed/changed over the life of the product.
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What are the three basic options to price strategy?
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1. skimming
2. penetration 3. competitive |
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What are the six selection criteria for price strategy?
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1. stage in life cycle
2. length of life cycle 3. # of competitors 4. lead time/competitive advantages 5. economies of scale 6. nature of demand |
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What do Pricing tactics specify?
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a particular technique or short-term action that seeks to obtain some competitive advantage or specific behavior from customers through price
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