marketing chapter 14

30 terms by emwk180 

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above at or below market pricing

setting a market price for a product or product class based on a subjective feel for the competitors price or market price as the benchmark

basing point pricing

selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer

bundle pricing

the marketing of two or more products in a single package price

cost plus pricing

summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price

customary pricing

setting a price that is dictated by tradition, a standardized channel of distribution or other competitive factors

everyday low pricing

the practice of replacing promotional allowances with lower manufacturer list price

experience curve pricing

a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 each time a firm's experience at producing and selling them doubles, resulting in possible rapid price reductions

flexible price policy

setting different prices for products and services depending on individual buyers and purchase situations

FOB origin pricing

"free on board" price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is occur (seller's factory or warehouse)

loss leader pricing

deliberately selling a product below its customary price not to increase sales but to attract customers attention in hopes that they will buy other products as well

odd even pricing

setting prices a few dollars or cents under an even number

one price policy

setting one price for all buyers of a product or service

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

predatory pricing

the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market

prestige pricing

charging a high price to help promote a high-quality image

price discrimination

the business practice of selling the same good at different prices to different customers

price fixing

an agreement among firms to charge one price for the same good

price lining

setting the price of a line of products at a number of different specific pricing points

price war

successive price cutting by competitors to increase or maintain their unit sales or market share

product line pricing

the setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line not for each item

promotional allowances

cash payments or extra amount of "free goods" awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product

quantity discounts

reductions in unit costs for a larger order

skimming pricing

Setting a high price when introducing a product that has little competition and will appeal to customers who like to be the first to have the latest products.

standard markup pricing

adding a fixed percentage to the cost of all items in a specific product class

target pricing

consist of (1) estimating the price that ultimate consumers would be willing to pay for a product (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers

target profit pricing

Setting an annual target of a specific dollar volume of profit

target return on investment pricing

setting a price to achieve an annual target return-on-investments

target return on sales pricing

setting price to achieve a profit that is a specific percentage of the sales volume

uniform delivered pricing

the price the seller quotes includes all transportation costs

yield management pricing

The charging of different prices to maximize revenue for a set amount of capacity at any given time.

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