Term
|
Definition
| Describes what something does: functions as a proof statement. |
|
|
Term
|
Definition
| Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way. |
|
|
Term
|
Definition
| Describes the value: it is best if it is an emotional and intangible answer to What's in it for me? |
|
|
Term
|
Definition
| Setting a price for by-products in order to make the main product's price more competitive. |
|
|
Term
|
Definition
| Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera. |
|
|
Term
| Competition-based pricing |
|
Definition
| Setting prices based on the prices that competitors charge for similar products. |
|
|
Term
|
Definition
| A very dangerous method of setting prices by adding a standard markup or margin to the cost of the product. |
|
|
Term
|
Definition
| A straight reduction in price on purchases during a stated period of time. |
|
|
Term
|
Definition
| Describes specific attributes: it is objective and observable |
|
|
Term
|
Definition
| The pricing of products based on some aspect of location. |
|
|
Term
| Market penetration pricing |
|
Definition
| Setting a low price for a new product in order to attract a large number of buyers and have a large market share. |
|
|
Term
|
Definition
| Setting a high price for a new product to maximize ROI from the segments willing to pay the high price: the company makes fewer but more profitable sales. |
|
|
Term
|
Definition
| The pricing of optional or accessory products to a main product. |
|
|
Term
|
Definition
| An irrational, short-lived, pricing situation where competitors [generally in close proximity to each other] continually decrease prices in anticipation of keeping current, or gaining additional sales volume. |
|
|
Term
|
Definition
| Combining several products and offering the group at a reduced price. |
|
|
Term
|
Definition
| Setting price differences between various products in a product line based on a combination of cost differences between the products, customer evaluations of different features, and competitors' prices. |
|
|
Term
|
Definition
| Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. |
|
|
Term
|
Definition
| A pricing approach that considers the psychology of prices and not simply the economics: the price is implies something about the product. |
|
|
Term
|
Definition
| Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs. |
|
|
Term
|
Definition
| The potential buyer's perceived worth of the purchase. |
|
|
Term
| Vertical marketing system [VMS] |
|
Definition
| A distribution channel structure in which one channel member controls the others and where producers, wholesalers, and retailers act as a unified system. |
|
|
