Marketing Test #3: Chapter 9 definitions

__________ is 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.

Captive-product pricing

__________ is setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Cost-based pricing

__________ is based on a buyer's perceptions of value rather than on the seller's cost

Customer value-based pricing

__________ is the fourth step in value-based pricing.

Designing products to deliver the desired value at a target price

__________ is the third step in value-based pricing.

Determining costs that can be incurred

costs that do not vary with production or sales level

Fixed Costs

__________ is offering just the right combination of quality and good service at a fair price.

Good-value pricing

__________ is setting a low price for a new product in order to attract a large number of buyers and a large market share

Market-penetration pricing

The new product pricing strategy of ______ means the initial price is set high.

Market-skimming pricing

__________ is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Price

__________ is a measure of the sensitivity of demand to changes in price.

Price elasticity

__________ is 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

Product line pricing

__________ is the second step in value-based pricing.

Setting a target price to match the customer's perceived value

__________ is/are pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

Target costing

__________ is/are the sum of the fixed and variable costs for any given level of production.

Total costs

__________ is attaching features and services to differentiate a company's offers and charging higher prices.

Value-added pricing

__________ is/are costs that vary directly with the level of production.

Variable costs

shows the number of units the market will buy in a given time period, at different prices that might be charged

demand curve

With ________, the price is used to say something about the product

psychological pricing