Term
| Market-skimming pricing (price skimming) |
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Definition
| 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. p 314 |
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Term
| Market-penetration pricing |
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Definition
| Setting a low price for a new product in order to attract a large number of buyers and a large market share. p 315 |
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Term
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Definition
| 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. p 316 |
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Term
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Definition
| The pricing of optional or accessory products along with a main product. p 316 |
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Term
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Definition
| 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. p 317 |
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Term
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Definition
| Setting a price for by- products in order to make the main product’s price more competitive. p 317 |
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Term
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Definition
| Combining several products and offering the bundle at a reduced price. p 317 |
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Term
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Definition
| A straight reduction in price on purchases during a stated period of time or in larger quantities. p 318 |
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Term
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Definition
| Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way. p 318 |
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Term
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Definition
| Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs. p 318 |
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Term
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Definition
| Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product. p 319 |
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Term
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Definition
| Prices that buyers carry in their minds and refer to when they look at a given product. p 319 |
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Term
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Definition
| Temporarily pricing products below the list price, and sometimes even below cost, to increase short- run sales. p 321 |
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Term
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Definition
| Setting prices for customers located in different parts of the country or world. p 322 |
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Term
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Definition
| A geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination. p 322 |
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Term
| Uniform-delivered pricing |
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Definition
| A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location. p 322 |
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Term
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Definition
| A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price. p 322 |
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Term
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Definition
| A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer. p 322 |
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Term
| Freight-absorption pricing |
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Definition
| A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business. p 323 |
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Term
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Definition
| Adjusting prices continually to meet the characteristics and needs of individual customers and situations. p 323 |
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