Marketing chapter 9

The principle of extremity avoidance suggests that to increase sales of one product:

A company should have both cheaper and more expensive side options.

A target brand appears more attractive than it is compared to inferior brands is known as

Attraction affect

What is defined as the marketing of two or more products in a single package price

Bundle pricing

What are the three Cs model for price setting?

Consumer assessment Costs Competitors price

Price elasticity

Defined as responsiveness of demeans to changes in price

A change in price in a elastic market is likely to show _________ change in Demand when compared to a similar change in an inelastic market.

Greater

Psychological pricing is primarily concerned with:

How consumers perceive the price

Our company is using prestige pricing more or less likely to use her on such even pricing strategy then standard retail companies

Less

What is Black Friday and example of

Loss leader pricing

What is defined as a syarefy to encourage people to buy more by offering price breaks for additional items

Multiple unit pricing

Setting a higher price so quality or status consumers will be attracted to this product

Prestige pricing

What is ala carte pricing

Price assembled as you add options

Consumers compare an observer price to an internal reference price or external frame of reference.

Reference pricing

When pricing a product in other countries, what should companies be sure to do?

Set prices that cater to cultural benefits

What is price skimming

Setting a high price for a new product to skim maximum revenues

What is flat rate pricing

Single rate per time period

The competitive retail price for a stereo system is $300. Wholesalers normally have a margin of 20% for such items. The menu facture's prices unknown. What steps should be taken to determine the manufactures highest price?

So for retail price, then wholesale price, then manufacture price

Markups can be greater than 100?

True

What is dynamic pricing

Variable rate for each customer

What is the definition of price

What is exchanged for the product, service or idea

What is the breakeven point?

Where profits just cover costs

Key difference between cost based pricing and value based pricing

Where you start the process