Marketing chapter 11
discount
A straight reduction in price on purchases during a stated period of time or of larger quantities
Developing a product and selling it at a reasonably low margin because additional purchases can be made using that product. A firm will use this pricing strategy to capture additional profits? EX: Amazon developing the Kindle electronic book and they know profits will be made when books/magazines are purchased.
Captive product pricing
Selling something at an extremely low price, in the hopes of attracting many consumers to capture a greater value of market share is called?
Promotional pricing
When using price steps, the seller must establish perceived ________ that support the price differences.
Quality differences
Market-skimming pricing
a strategy with high initial prices to "skim" revenue layers from the market
dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations
International pricing
adjusting prices for international markets
psychological pricing
considers the psychology of prices and not simply the economics; the price is used to say something about the product
promotional pricing
temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
geographical pricing
used for customers in different parts of the country or the world
Pricing Strategies
International pricing, discount and allowance, segmented, geographical, dynamic, physcholgical, promotional
Many producers who use captive-product pricing set the price of the main product ________ and set _________________ on the supplies necessary to use the product.
Low; high mark ups
When introducing a new product, a company can choose market-skimming pricing. Which strategy discussed could be an alternative strategy?
Market penetration
If in the early periods of the introduction of something, the prices are extremely high, what strategy is being used?
Price skimming
A firm does not set a single price but instead what concept can they use to determine pricing ?
Pricing structure
segmented pricing
involves selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
market penetration pricing
setting a low price for a new product in order to attract a large number of buyers and a large market share
captive product pricing
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
optional product pricing
takes into account optional or accessory products along with the main product
product line pricing
takes into account the cost differences between products in the line, customer evaluation of their features, and competitors' prices
A challenge for management in product line pricing is to decide on the price steps between?
Various products in a line