Marketing chapter 9 key terms
Card Set Information
Marketing chapter 9 key terms
Marketing exam #2
A reduction from the list price for buyer actions such as trade-ins or promotional sales support.
Break-even pricing (target return pricing)
Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.
Setting a price for by-products to make the main product's price more competitive.
Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video game console.
Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
Cost-plus pricing(markup pricing)
A standard markup for the cost of the product.
Setting prices base on competitors' strategies, prices, costs, and market offerings.
Customer value-based pricing
Setting price based on buyers' perceptions of value rather than on the seller's cost.
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
A straight reduction in price on purchases made during a stated period of time or in larger quantities.
Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
Fixed costs (overhead)
Costs that do not vary with production or sales level.
Offering the right combination of quality and good service at a fair price.
Setting a low price for a new product to attract a large number of buyers and a large market share.
Market-skimming pricing(or price skimming)
Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price; the company makes fewer but more profitable sales.
The pricing of optional or accessory products along with a main product.
The amount of money charged for a product or service; the sum of values that customers exchange for the benefits of having or using the product or service.
A measure of the sensitivity of demand to changes in price.
Product bundle pricing
Combining several products and offering the bundle at a reduced price.
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.
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
Pricing that considers the psychology of prices, not simply the economics; the price says something about the product.
Prices that buyers carry in their minds and refer to when they look at a given product.
Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
The sum of the fixed and variable costs for any given level of promotion.
Costs that vary directly with the level of production.