Create multiple-choice test questions for each content and academic vocabulary term.

Content Vocabulary

  • markup (p. 605\bf{605})
  • one-price policy (p. 608\bf{608})
  • flexible-price policy (p. 608\bf{608})
  • skimming pricing (p. 609\bf{609})
  • penetration pricing (p. 610\bf{610})
  • product mix pricing strategies (p. 613\bf{613})
  • price lining (p. 613\bf{613})
  • bundle pricing (p. 613\bf{613})
  • geographical pricing (p. 614\bf{614})
  • segmented pricing strategy (p. 614\bf{614})
  • psychological pricing (p. 615\bf{615})
  • prestige pricing (p. 616\bf{616})
  • everyday low prices (EDLP) (p. 616\bf{616})
  • promotional pricing (p. 616\bf{616})

Academic Vocabulary

  • relation (p. 605\bf{605})
  • allocated (p. 606\bf{606}
  • ultimate (p. 618\bf{618})
  • vehicles (p. 618\bf{618})



Content Vocabulary-

Markup- The difference between the actual cost of the item and the sale price of the item. Products may be "marked up" by several parties before reaching the final consumer.

One-price policy- Every customer is charged the same price. There are no deviations from this price, it is the most consistent way to price one product.

Flexible-price policy- Customers pay a variety of different prices for the same product. This is typically where bargaining comes in, when you are purchasing a car, artwork or some types of jewelry.

Skimming pricing- When an astronomically high price is set on a new product. Typically this method is used when demand is measurably high. This is used during the introductory period of a new product.

Penetration pricing- The complete opposite of skimming, where the price for a new product is set quite low. This method is used when a business wants to encourage as many customers as possible to purchase their new product.

Product mix pricing strategies- When a group of products gets a price adjustment instead of just one product, in an effort to maximize profitability.

Price lining- A limited number of prices is set for specific groups of merchandise.

Bundle pricing- A single price is offered for a package of products that have been clumped together by a retailer. The price for all the products combined is less than buying each of the products individually.

Geographical pricing- Price adjustments that are necessary based on what the different shipping agreements are.

Segmented pricing strategy- Two or more prices for a single product are used, even though there is absolutely zero difference in the item's cost.

Psychological pricing- These techniques create a type of illusion for the customers, typically these involve changing the price just a few cents to look more appealing for the consumer.

Prestige pricing- Prices are set high in order to signify that the product is of a higher quality and suggests that the consumer has some sort of high status.

Everyday low prices- Consistently low set prices that will most likely not increase. They offer a stable benefit for consumers as well as the retailer.

Promotional pricing- Used when a retailer is doing some sort of promotion, prices will be set quite low for the promotion and it is typically for a short period of time.

Academic Vocabulary-

Relation- This describes the connection that demand and price have within a given pricing method.

Allocated- The amount of money that needs to be put towards an expense.

Ultimate- Final or last decision that is made related to pricing.

Vehicle- An instrument for companies to explain certain complex ideas to consumers, like pricing information.

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook