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