Marketing Exam 3

__________ occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

Deceptive pricing

Which term refers to the drop in the average per-unit product cost that comes with accumulated production experience?

Experience curve

__________ is a pricing strategy in which goods are placed free on board carrier; the customer pays the freight from the factory to the destination.

FOB -original pricing

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

Market-penetration pricing

__________ is setting a 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.

Marketing-skimming pricing

__________ is the pricing of optional or accessory products along with a main product.

Optional-product pricing

___ is a measure of the sensitivity of demand to changes in price

Price elasticity

__________ is combining several products and offering the bundle at a reduced price.

Product bundle pricing

__________ 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

____ vary directly with the level of production

Variable costs

__________ is a geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.

Zone pricing

A discount is best defined as __________.

a straight reduction in price on purchases during a stated period of time or in larger quantities

Price is best defined as the ____

amount of money charged for a product or service

____ is based on a buyers perceptions of value rather than on the sellers cost

customer-value based pricing

Which of the following shows the # of units the market will buy in a given time period, at different prices that might be changes?

demand curve

In value based pricing, ___ is the fourth step

designing products to deliver the desired value at the target price

In value-based pricing,______ is the third step.

determine the costs that can be incurred

____ is offering just the right combination of quality and good service

good-vale pricing

Psychological pricing is __________.

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

__________ is temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.

promotional pricing

Captive-product pricing 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 videogame console

What is the second step in the value-based pricing?

setting a target price to match customer perceived value

In cost-based pricing, ____ is the third step

setting the price based on cost

A demand curve is curve that_____

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

Which term refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way?

Allowance

__________ is a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.

Basing-point pricing

__________ is setting a price for by-products in order to make the main product's price more competitive.

By-product pricing

__________ is selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.

Segmented pricing

In cost-based pricing, designing a good product is the ___ step.

first

____ are costs that do not vary with production or sales level.

fixed costs

__________ is setting prices for customers located in different parts of the country or world.

geographical pricing

___ are the sum of fixed and variable costs for any given level of production

total costs

___ is attaching specific features and services to differentiate a company offers.

value-added pricing

Uniform-delivered pricing is __________.

a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location

What is the first step in value-based pricing?

assessing customer needs and value perceptions

__________ 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 videogame console.

captive-produc pricing

A major factor in price increases is __________.

cost inflation

In cost based pricing,___ is the fourth step.

convincing buyers of a products value

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

cost-based pricing

Second step in cost-based pricing?

determining product costs

__________ is adjusting prices continually to meet the characteristics and needs of individual customers and situations.

dynamic pricing

Which term refers to pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met?

target costing