4.4 Slide

Multi-branding

"Competitors" owned by the same companies

Rebate

- A partial refund to a consumer who has fulfilled certain requirements after purchasing a good or service - It is estimated that 40-60% of rebates never get redeemed

Skimming Price

- High price designed to emphasize the quality, image, or uniqueness of the product - Can also help to recoup initial manufacturing and startup costs

Advertising allowance

- Money that the manufacturer or service provider pays to a retailer to get the word out about a product - By helping the retailer pay its advertising costs, the company's advertising allowance gives the retailer an incentive to carry that product

Reductions in prices

- Quantity discount - Seasonal discount - Cash discount - Advertising allowance - Coupon - Rebate

Economic Utility

- Refers to usability (and perceived value) to the consumer - This helps to gauge the consumer's level of happiness with a product - Time utility - Place utility - Form utility - Possession utility - Information utility

Elastic

A price increase will decrease total revenue

Inelastic

A price increase will increase total revenue

Penetration Price

A very low price designed to increase the quantity sold of a product by emphasizing the value

Coupon

A voucher entitling the holder to a discount off a particular product or service

Possession Utility

Enhances value by allowing for easy use by consumer or transfer of ownership to consumer

Form Utility

Enhances value by creating more useful or desirable products out of raw materials or separate parts

Time Utility

Enhances value by having a product or service available to consumers during a certain time of day, week, month or year

Place Utility

Enhances value by placing products or services in easily accessible locations for consumers

Information Utility

Enhances value by supplying consumers with information

Cash discount

For paying in full up

Seasonal discount

Goods out of season

Quantity discount

Purchasing large amounts

Product life cycle

Refers to the stages through which a product or its category bypass