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