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Details Title: Marketing Chap 14 Description: Marketing Chap 14 Total Flash Cards: 17 Created: 03/19/2007 11:54:23	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term psychological pricing Definition Pricing policy based on the belief that certain prices or price ranges make a good more appealing than others to buyers Term penetration pricing strategy Definition Pricing strategy involving the use of a relatively low entry price as compared with competitive offerings; designed to help secure initial market acceptance Term price flexibility Definition Pricing policy permitting variable prices for goods and services Term FOB origin – freight allowed(or freight absorbed) Definition System that handles transportation costs by allowing the buyer to deduct shipping expenses from the cost of the goods. Term profit center Definition Any part of an organization to which revenue and controllable costs can be assigned Term bundle pricing Definition Offering two or more complementary products and selling them for a single price Term transfer price Definition Cost assessed for a product exchanged between profit centers within a single firm. Term product-line pricing Definition Practice of marketing different lines of merchandise at a limited number of prices. Term competitive pricing strategy Definition Pricing strategy designed to de-emphasize price as a competitive variable by pricing a product at the general level of comparable offerings Term FOB (free on board) plant Definition Price quotation that does not include shipping charges; also called FOB origin. Term cannibalization Definition Securing additional sales through lower prices that take sales away from the marketer’s other products Term zone pricing Definition System that handles transportation costs by dividing the market into geographic regions and setting a different price in each region. Term uniform-delivered pricing Definition Price-setting system that handles transportation costs by quoting all buyers the same price, including transportation expenses Term basing-point pricing Definition Pricing system common in some industries during the early twentieth century that incorporated transportation costs by quoting factory prices plus freight charges from the basing point city nearest the buyer. Term loss leader Definition Product offered to consumers at less than cost to attract them to a store in the hope that they will also buy other merchandise at regular prices Term skimming price strategy Definition Pricing strategy involving the use of a high price relative to competitive offerings Term promotional pricing Definition Pricing policy in which a lower than normal price is used as a temporary ingredient in a firm’s marketing strategy.