MKT 300 Ch. 9 DSM

__________ 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

Designing a good product is the __________ step in cost-based pricing.

FIRST

__________ is/are 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

__________ 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.

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

With ________, the price is used to say something about the product.

PSYCHOLOGICAL 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

A demand Curve _________.

shows the NUMBER OF UNITS the market WILL BUY in a given time period, at different prices that might be CHANGED.

__________ 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