Term
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Definition
| assignment of value, amount consumer must exchange to receive a product |
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Term
| Pricing Objectives List 5 |
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Definition
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Term
| Pricing Objectives-Sales or market share |
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Definition
| maximize sales and increase market share |
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Term
| Pricing Objectives-Profit |
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Definition
| hope to achieve desired net profit margin |
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Term
| Pricing Objectives-COmpetitive effect |
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Definition
| trying to reduce effectiveness of competitors market precense |
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Term
| Pricing Objectives-Customer Satisfaction |
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Definition
| keeping customers long term |
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Term
| Pricing Objectives-Image Enhancement |
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Definition
| promoting product quality |
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Term
| Factors in Price Setting (4) |
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Definition
| costs, demand, revenue, pricing environment |
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Term
| Demand curve for normal and prestige products INSERT IMAGES HERE |
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Definition
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Term
| Demand shift INSERT PICTURE |
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Definition
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Term
| Price Elasticity INSERT CHART |
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Definition
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Term
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Definition
percent change in unit sales that result from a percentage change in price
% change in quantity demand/%change in price |
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Term
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Definition
| change in price of other products increase demand for other |
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Term
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Definition
| increase in price of gas decreases demand for tires |
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Term
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Definition
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Term
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Definition
| number of units sold to cover total cost |
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Term
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Definition
| cists abd demand to find price that maximizes profits |
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Term
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Definition
| increase in total cost from producing additional unit |
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Term
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Definition
| increase in total income from selling one additional unit |
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Term
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Definition
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Term
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Definition
1. Set Pricing Objectives
2. Estimate Demand
3 Determine Costs
4. Examine Pricing ENvironment
5. Choose Pricing Strategy
6. Develop Pricing Tactics |
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Term
| (5) Evaluating price environment |
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Definition
| 1. overall ceonomy 2. competition 3. governemnt regulation 4. consumer trends 5. international environment (culture) |
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Term
| Pricing Strategy based on cost |
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Definition
| total all product costs and add markup |
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Term
| Pricng Strategy based on demand |
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Definition
| how much can be sold at different prices |
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Term
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Definition
| pricing strategy based on demand |
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Term
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Definition
| manage capcity by charging different prices to different customers |
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Term
| Pricing stratgey based on competition |
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Definition
Near-around them
at-the same
above/below-more significant |
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Term
| Price Leadership strategy |
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Definition
used on oligopolistic society
cominant firm sets price and competitors get in line or get out |
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Term
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Definition
| consider what customer value and price they'll pay and competition |
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Term
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Definition
| set high initial price with plans to lower it in the future. make profitable sales, but less of them |
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Term
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Definition
| marketer sets low price right away and goal is to obtain all marketshare |
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Term
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Definition
| set low initial price for limited period of time. reduces risk for awhile |
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Term
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Definition
seperate types of payment
ex. country club: fees plus meals |
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Term
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Definition
| like a car loan. customer breaks up price |
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Term
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Definition
| customer pays cost of shipping |
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Term
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Definition
| seller pays transportation cost |
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Term
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Definition
| marketers choose location that the customer must pay for a delivery form |
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Term
| Uniform delivered pricing |
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Definition
| add up average shipping costs no matter distance |
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Term
| Freight absorption pricng |
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Definition
| seller takes on part of all the cost |
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Term
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Definition
trade discounts-percentage off suggested price for each channel level
quantity-larger quantity
cash discount-encourages miiediate payment
seasonal discount-cheaper during cetain times of year |
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Term
Internet Pricing:
Dynamic
Freedomics |
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Definition
dynamic-internet makes it easy for sellers to adjust price in response to market place changes
Freenomics-encourages giving away free products by bringing in more people to the market |
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Term
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Definition
| Buyers have an idea of what they should be charged. Internal reference price: set price rage consumers have in mind for a product. If actual price is higher than internal reference price, its not worth purchasing. If it is too low, I also won’t buy it because I think the quality is not as good. Price ques quality |
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Term
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Definition
| Odd-even pricing: prices includes dollars an cents which leads to increased sales Price lining: items in a product line that sell at different price points (packages at car wash) Prestige pricing: an increase in the price can increase sales for pretige procudts. |
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Term
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Definition
| Bait and switch: offering lower priced item, and you come in and they sell you a higher priced item (they “ran out”) Loss-leader pricing: retailer offers item below cost to get consumers into the store (soda at cheap price durring bbq season) |
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Term
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Definition
| Price discrimination: products are not allowed to sell the same product to different resellers at different prices if that lessens competition Price fixing: when 2 companies conspire to keep prices at a certain level. Horizontal done by 2 gas station. Vertical: manufacuer trys to get retialer to sell |
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Term
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Definition
| settin prices very low or below cost to attract customers to store |
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