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Terms in this set (15)
Implemented by carefully examining all of the costs asscoiated with carrying a product and selling it to consumer then adding the desired profit to arrive at a selling price.
A pricing strategy that examines costs for individual products or services and adds a standard markup.
Demand oriented pricing
Most effective when selling products with inelastic demand, this pricing strategy requires price planners to estimate the value customers place on products and set prices accordingly.
Fixed pricing (One-Price Policy)
A policy under which an organization charges the same prices to all customers regardless of the quantity of the purchase.
A product that is sold below costs in an effort to increase customer traffic.
Pricing straegy that adds a predetermined percentage to the cost of products.
Odd/even cent pricing
Psychological pricing technique based on the principle that prices ending in odd numbers ($5.99) communicate a bargain and prices ending in even numbers ($6.00) communicate quality.
Setting a low price when introducing a product into a competitive market to motivate customers to purchase.
Pricing technique that sets a higher-than-average price for products in order to communicate quality and status.
Establishing price points between products in a product line to communicate differences in quality and/or service to consumers.
Selling a product at a temporarily lower price in order to attract customers.
Pricing technique based on the belief that customers form their perceptions of products on price and these perceptions affect customer buying decisions.
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.
Stating the price of a product per unit of standard measure.
Variable pricing (Flexible-Price Policy)
Pricing technique that encourages customers to bargain with sellers in an effort to obtain the best price for products and services.
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