MKT CH9 Terms
__________ 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 the fourth step in cost-based pricing.
Convincing buyers of a product's value
__________ is the first step in cost-based pricing. Although costs are an important consideration in setting prices, cost-based pricing is often product driven. The company designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit.
Designing a good product
__________ 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
__________ is the second step in cost-based pricing.
Determining product costs
__________ adjusts prices continually to meet the characteristics and needs of individual customers and situation.
Dynamic pricing
__________ is/are costs that do not vary with production or sales level.
Fixed costs
__________ is/are the sum of the fixed and variable costs for any given level of production.
Total costs
With ________, the price is used to say something about the product.
psychological pricing
__________ is the first step in value-based pricing.
Assessing the customer needs and value perceptions
__________ 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 setting a price based on a buyer's perceptions of value rather than on the seller's cost.
Customer value-based pricing
__________ 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
__________ is 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. 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
__________ refers to temporary price reductions to spur on short-run sales.
Promotional pricing
__________ refers to prices that allow for differences in customers, products, or locations.
Segmented pricing
__________ based on cost is the third step in cost-based pricing.
Setting the price
__________ is the second step in value-based pricing.
Setting the target price to match a 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 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
A __________ shows the number of units the market will buy in a given time period, at different prices that might be charged.
demand curve