pricing strategies

Wal Mart will deduct up to $25 off the purchase of a new car battery when customers trade in their old car batteries.

allowance

During the Christmas season, customers can buy Xbox 360, Minecraft, and an extra controller for $199.

bundle pricing

Pricing method in which a company offers several complementary, or corresponding, products in a package that is sold at a single price.

bundle pricing

A software company offers special discounts to students and teachers.

buyer identification

This is the stage of the product life cycle where the price is reduced, manufacturing costs are reduced, and the product may be discontinued.

decline

The singing group, "Paid In Full," offers three CDs for $45 instead of one for $15.

multiple-unit pricing

One store sets prices that end in .97; another store sets prices that end in .00.

odd-even pricing

A pricing policy in which all customers are charged the same price

one-price policy

A pricing policy used to encourage as many people as possible to buy a product and penetrate the market

penetration pricing

An automobile manufacturer known for its luxurious, high-end vehicles can set much higher-than-average prices for its cars.

prestige pricing

This pricing strategy sets higher-than-average prices to suggest status and high quality to the consumer

prestige pricing

A phone company charges more for long-distance calls made during business hours.

time of purchase

Which of the following are methods of new production introduction? Choose all that apply.

*penetration pricing *skimming pricing

Match the appropriate pricing strategies to the scenarios below.

....

A car's base price is $15, 999, but several options are available at set prices, such as a DVD player for $1250.00. An American company doing business in China adds shipping costs, tariffs, and exchange rate considerations to its pricing.

Optional product

A men's clothing store sells jeans for $25, $35, and $50 rather than $25, $26, and $27. This is an example

Price Lining

Pricing techniques that help create an illusion for customers

Psychological pricing

A store sets low prices on a consistent basis with no intention of raising them or offering discounts.

everyday low price

Low prices set on a consistent basis with no intention of raising them or offering discounts in the future.

everyday low prices

A policy in which customers pay different prices for the same type or amount of merchandise

flexible price policy

This is the stage of the product life cycle where marketers want a product to stay for the longest period of time.

growth

An American company doing business in China adds shipping costs, tariffs, and exchange rate considerations to its pricing.

international

A pricing strategy where prices are set low, sometimes below cost, to attract customers to a store in the hope that once there, customers will buy other products at full price.

loss leader pricing

An electronics store advertises a very low-priced game console and expects customers to purchase the console along with other more expensive products.

loss leader pricing

A dishonest sales practice in which a business advertises a bargain price for an item in order to draw customers into the store and then tells the prospective buyer that the advertised item is of poor quality or no longer available in an attempt to persuade the customer to purchase a more expensive product.

mark down

This is the stage of the product life cycle where either the price of the product is reduced OR the product is revised.

maturity

This pricing strategy sets a limited number of prices for specific groups or lines of merchandise

price lining

This pricing strategy is generally used in conjunction with sales promotions wherein prices are reduced for a short period of time

promotional pricing

Odd-even pricing, prestige pricing, multiple unit pricing, and everyday low prices are examples of

psychological pricing

Floor-level George Strait concert tickets sell for $450 in Los Angeles, but when he performs in Memphis, the same tickets will sell for $200 each.

purchase location

A local grocery store offers a discount if you purchase six or more boxes of Goldfish Colors.

quantity discounts

A department store lowers the price of snow boots by 45% in June.

seasonal Discounts

A pricing policy that sets a very high price for a new product

skimming pricing