Marketing Test Two, Chapter 9

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

A demand curve

first step in value-based pricing.

Assessing the customer needs and value perceptions

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

third step in value-based pricing.

Determining costs that can be incurred

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

Good-value pricing

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

__________ 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 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

econd step in value-based pricing.

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

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

Value-added pricing

Dynamic pricing

adjusts prices continually to meet the characteristics and needs of individual customers and situations.

Designing products to deliver the desired value at a target price

fourth step in value-based pricing.

Target costing

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

Segmented pricing

refers to prices that allow for differences in customers, products, or locations.

Market-skimming pricing

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.

Promotional pricing

temporary price reductions to spur on short-run sales.

psychological pricing

the price is used to say something about the product. Psychological pricing is pricing that considers the psychology of prices and not simply the economics.