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. |
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Term
| Break-even pricing (target profit pricing) 267 |
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Definition
| Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit. |
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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. |
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Term
| Captive-product pricing 277 |
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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. |
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Term
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Definition
| Adding a standard markup to the cost of the product. |
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Term
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Definition
| A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged. |
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Term
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Definition
| A straight reduction in price on purchases during a stated period of time. |
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Term
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Definition
| Adjusting prices continually to meet the characteristics and needs of individual customers and situations. |
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Term
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Definition
| Costs that do not vary with production or sales level. |
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Term
| Geographical pricing (284) |
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Definition
| Setting price based on the buyer's geographic location. |
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Term
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Definition
| Offering just the right combination of quality and good service at a fair price. |
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Term
| Market-penetration pricing 275 |
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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. |
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Term
| Market-skimming pricing 275 |
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Definition
| Setting a hgih price for a new product to skim maximum revenues layer by layer from the segments wiling to pay the high price; the company makes fewer but more profitable sales. |
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Term
| Optional-product pricing 276 |
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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
| The amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits or having or using a product or service. |
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Term
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Definition
| A meausre of the sensitivity of demand to changes in price. |
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Term
| Product bundle pricing 278 |
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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
| Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations or different features, and competitors' prices. |
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Term
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Definition
| Temporarily pricign products below the list price, and sometimes even below cost, to increase short-run sales. |
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Term
| Psychological pricing 280 |
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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 the 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
| Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs. |
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Term
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Definition
| Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met. |
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Term
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Definition
| The sum of the fixed and variable costs for any given level of production. |
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Term
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Definition
| Attaching value-added features and services to differentiate a marketing offer and support higher prices, rather than cutting prices to match competitors. |
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Term
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Definition
| Setting price based on buyers' perceptions of value rather than in the seller's cost. |
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Term
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Definition
| Costs that vary directly with the level of production. |
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