Term
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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. |
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Term
| Market-penetration pricing |
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Definition
| Setting a low price for new product in order to attract a large number of buyers and large market share. |
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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. |
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Term
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Definition
| The pricing of optional or accessory products along with a main product. |
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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 film for a camera. (or ink for a printer) |
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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. (dura-log; selling the sawdust from pencil manufacturing) |
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Term
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Definition
| Combining several products and offering the bundle at a reduced price |
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Term
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Definition
| A straight reduction in price on purchases druing a stated period of time. |
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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 product in some way. |
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Term
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Definition
| Selling a product or service at two or more prices, where the differences in prices is not based on differences in costs. |
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Term
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Definition
| A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product |
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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 |
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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 |
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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. |
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Term
| Uniform-delivered pricing |
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Definition
| A geographical pricing strategy in which the company charges the smae price plus freight to all customers, regardless of location. |
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Term
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Definition
| A geographical pricing strategy in whic 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 |
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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. |
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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. |
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Term
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Definition
| look at pages 349 to the end :) |
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