Marketing Module 9

first

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

Market-skimming pricing

The new product pricing strategy of ______ means the initial price is set high.

psychological pricing

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

Price elasticity

_________ is a measure of the sensitivity of demand to changes in price.

Value-added pricing

_________ is attaching features and services to differentiate a company's offers and charging higher prices.

Customer value-based pricing

_________ is based on a buyer's perceptions of value rather than on the seller's cost.

Good-value pricing

_________ is offering just the right combination of quality and good service at a fair price.

Market-penetration pricing

_________ is 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

_________ 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.

Cost-based 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.

Designing a good product

_________ is the first step in cost-based pricing.

Designing products to deliver the desired value at a target price

_________ is the fourth step in value-based pricing.

Product line 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.

Fixed costs are __________.

costs that do not vary with production or sales level

Price 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

Variable costs

_________ is/are costs that vary directly with the level of production.

Determining costs that can be incurred

_________ is the third step in value-based pricing.

Setting a target price to match the customer's perceived value

_________ is the second step in value-based pricing.

Target costing

_________ is/are pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.

Total costs

_________ is/are the sum of the fixed and variable costs for any given level of production.

A demand curve

_________ shows the number of units the market will buy in a given time period, at different prices that might be charged.