Chapter 13 Types of pricing

29 terms by globo1 

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Only the terms that is related to pricing and difficult terms.

Component part

an item that becomes part of a physical product and is either a finished item ready for assembly or a product that need little processing before assembly

Process material

a material that is used directly in the production of another product but is not readily identifiable in the finished product.

Supply

an item that facilitates productions and operations but does not become part of a finished product

Product line

a group of similar products that differ only in relatively minor characteristics

Product modification

the process of changing one or more of a product's characteristics.

Line extension

development of a new product that is closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs

Trademark

a brand name of brand mark that is registered with U.S Patent and Trademark office and this is legally protected from use by anyone except its owner

Trade name

the complete and legal name of an organization

Brand equity

marketing and financial value associated with a brand's strength in a market.

Brand extension

using an existing brand to brand a new product in a different product category.

Product differentiation

the process of developing and promoting differences between one's product and all similar products

Markup

the amount a seller adds to the cost of a product to determine its basic selling price

Breakeven quantity

the number of units that must be sold for the total revenue (from all units sold) to equal; the total cost (of all units sold)

Total revenue

the total amount received from sales of a product.

Price skimming

the strategy of charging the highest possible price for a product during the introduction stage of its life cycle

Penetration pricing

the strategy of setting a low price for a new product

Secondary-market pricing

setting one price for the primary target market and a different price for another market

Periodic discounting

temporary reduction of price on a patterned or systematic basis

Random discounting

temporary reduction of prices on an unsystematic basis

Multiple-unit pricing

the strategy of setting a single price for two or more units

Reference pricing

pricing a product at a moderate level and positioning it next to a more expensive model or brand

Captive pricing

pricing the basic product in a product line low, but pricing related items at a higher level

Premium pricing

pricing the highest-quality or most-versatile products higher than other models in the product line

Price lining

the strategy of selling goods only at certain predetermined prices that reflect definite price breaks

Price dealer

products priced below the usual markup, near cost, or below cost

Special-event pricing

advertised sales or price cutting linked to a holiday, season, or event

Comparison discounting

setting a price at a specific level and comparing it with a higher price

Transfer pricing

prices charged in sales between an organization's units

Discount

a deduction from the price of an item.

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