Chapter 21 Flashcards Preview

Principles of Marketing 15-21 > Chapter 21 > Flashcards

Flashcards in Chapter 21 Deck (30)
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1
Q

Goals that describe what a firm wants to achieve through pricing

A

Pricing objectives

2
Q

Adding a dollar amount or percentage to the cost of the product

A

*cost-based pricing

3
Q

Adding a specified dollar amount or percentage to the seller’s cost

A

cost-plus pricing

4
Q

Adding to the cost of the product a predetermined percentage of that cost

A

*Markup pricing

5
Q

Pricing based on the level of demand for the product

A

demand-based pricing

6
Q

Pricing influenced primarily by competitors prices

A

competition-based pricing

7
Q

Charging different prices to different buyers for the same quality and quantity of product

A

differential pricing

8
Q

Establishing a final price through bargaining between seller and customer

A

negotiated pricing

9
Q

setting one price for the primary target and a different price for another market

A

Secondary-market price

10
Q

Temporary reduction of prices on a patterned or systematic basis

A

Periodic discounting

11
Q

Temporary reduction of prices on an unsystematic basis

A

random discounting

12
Q

Charging the highest possible price that buyers who most desire the product will pay

A

*Price skimming

13
Q

Setting prices below those of competing brands to penetrate a market and gain a significant marketshare quickly

A

Penetration pricing

14
Q

Establishing and adjusting prices of multiple products with a product line

A

Product-line pricing

15
Q

Pricing the basic product in a product line low, while pricing related items higher

A

*captive pricing

16
Q

Pricing the highest-quality or most versatile products higher than other models in the product line

A

premium pricing

17
Q

Pricing an item in a product line low with the intention of selling a higher priced item in the line

A

bait pricing

18
Q

Setting a limited number of prices for selected groups or lines of merchandise

A

price lining

19
Q

Pricing that attempts to influence a customer’s perception of price to make a products price more attractive

A

Psychological pricing

20
Q

Pricing a product at a moderate level and displaying it next to a more expensive model or brand

A

reference pricing

21
Q

Packaging together two or more complementary product and selling them at a single price

A

bundle pricing

22
Q

Packaging together two or more identical products and selling them at a single price

A

multiple-unit pricing

23
Q

Pricing products low on a consistent basis

A

everyday low prices (EDLP)

24
Q

Ending the price with certain number to influence buyer’s perceptions of the price or product

A

odd-even pricing

25
Q

Pricing on the basis of tradition

A

Customary pricing

26
Q

Setting prices at an artificially high level to convey prestige or a quality image

A

*prestige pricing

27
Q

Fees set by people with great skill or experience in a particular field

A

*Professional pricing

28
Q

Products priced near or even below cost

A

price leaders

29
Q

Advertised sales or price cutting linked to a holiday, a season, or an event

A

*special event pricing

30
Q

Setting a price at a specific level and comparing it with a higher price

A

comparison discounting