Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
what are the four big factors of price setting |
costs, demand, revenue, price environment |
|
|
what are the three types of cost. |
fixed, variable, total |
|
|
for normal products demand will increase as price decreases. What about prestigious products? |
demand may increase with increase in price. But demand will for sure decrease with a very low price. |
|
|
what is the economics term for a small change in demand for a change in price? "......................................................."large change in demand? |
inelastic, elastic |
|
|
what are the four basic types of markets |
perfect competition monopolistic competition oligopoly monopoly |
|
|
how have firms reacted to the recent recession? |
some firm cut price some firms feature more affordable items some held price, but re-positioned brands to enhance their value. |
|
|
what are the three major categories of pricing strategies |
customer value based pricing cost based pricing competition based pricing |
|
|
what is customer based pricing? differentiate good value pricing and value added pricing |
setting prices based on buyers perceptions of value rather than the sellers cost. GVP: offering just the right combo of quality and service VAP: attached value added features and charging a higher price |
|
|
what is cost based pricing? and the three types within it |
setting prices based on production, distribution and selling costs at a fair rate of return. 3 types: cost plus markup pricing break even pricing target return pricing |
|
|
what are the 4 additional pricing situations for special situations? |
1. new product pricing 2. product mix pricing 3. price adjustments 4. price changes |
|
|
what is market skimming and when is it useful? |
setting a high price on a NEW product to get the top most willing to pay consumers. fewer sales are made but they are more profitable. products quality can match the price, costs of low volume do not cancel the benefit of higher price. |
|
|
what is market penetration? |
setting a low initial price to penetrate the market quickly and deeply. can attract a large number off buyers quickly and gain a bigger market share. |
|
|
product mix pricing; product line pricing, optimal product pricing and captive product pricing. explain |
product line: setting price steps between various products in a line based on cost differences, customer evaluation on features, and competitors prices optimal product: pricing optional or accessory products sold with the main product pricing products that must be used with the main product |
|
|
what is By-product pricing; product bundle pricing |
by product pricing: Turning trash into cash product bundle: combining several products and offering the bundle at a lower price. |
|
|
what are the 7 price adjustment strategies? see notes for in depth analysis of each one. |
discount and allowance pricing segmented pricing psychological pricing promotional pricing geographical pricing dynamic pricing international pricing |
