Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/15

Click to flip

15 Cards in this Set

  • Front
  • Back

what are the four big factors of price setting

costs, demand, revenue, price environment

what are the three types of cost.

fixed, variable, total

for normal products demand will increase as price decreases. What about prestigious products?

demand may increase with increase in price. But demand will for sure decrease with a very low price.

what is the economics term for a small change in demand for a change in price?


"......................................................."large change in demand?

inelastic,


elastic

what are the four basic types of markets

perfect competition


monopolistic competition


oligopoly


monopoly

how have firms reacted to the recent recession?

some firm cut price


some firms feature more affordable items


some held price, but re-positioned brands to enhance their value.

what are the three major categories of pricing strategies

customer value based pricing


cost based pricing


competition based pricing

what is customer based pricing?


differentiate good value pricing and value added pricing

setting prices based on buyers perceptions of value rather than the sellers cost.




GVP: offering just the right combo of quality and service


VAP: attached value added features and charging a higher price

what is cost based pricing? and the three types within it





setting prices based on production, distribution and selling costs at a fair rate of return.




3 types: cost plus markup pricing


break even pricing


target return pricing

what are the 4 additional pricing situations for special situations?

1. new product pricing


2. product mix pricing


3. price adjustments


4. price changes

what is market skimming and when is it useful?

setting a high price on a NEW product to get the top most willing to pay consumers. fewer sales are made but they are more profitable.




products quality can match the price, costs of low volume do not cancel the benefit of higher price.

what is market penetration?

setting a low initial price to penetrate the market quickly and deeply.


can attract a large number off buyers quickly and gain a bigger market share.



product mix pricing; product line pricing, optimal product pricing and captive product pricing. explain

product line: setting price steps between various products in a line based on cost differences, customer evaluation on features, and competitors prices




optimal product: pricing optional or accessory products sold with the main product




pricing products that must be used with the main product

what is By-product pricing; product bundle pricing

by product pricing: Turning trash into cash


product bundle: combining several products and offering the bundle at a lower price.

what are the 7 price adjustment strategies?


see notes for in depth analysis of each one.

discount and allowance pricing


segmented pricing


psychological pricing


promotional pricing


geographical pricing


dynamic pricing


international pricing