Pricing Strategies and Product Concepts

These flashcards cover key concepts about pricing strategies, product offers, and distinctions between brands and trademarks.

What is competition-based pricing strategy?

Basing price on what competitors are charging.

What is skimming pricing strategy?

Charging more because there's demand, but no competition.

What is penetration pricing strategy?

Charging less for a product, but keeping a lower-ish price throughout.

What does Everyday Low Pricing (EDLP) mean?

Charging the same price at a store without changing it.

What is a high-low pricing strategy?

Higher price put on the price tag but there are sales to show value.

What is psychological pricing?

There's an odd number on the end of the listing price like .99.

What is a total product offer?

Everything that consumers evaluate when deciding whether to buy something; also called a value package.

What is the difference between product mix and product line?

Product line is a group of products that are physically similar or intended for a similar market, while product mix is the combination of product lines offered by a manufacturer.

What is a brand?

A brand-name, logo, or symbol that identifies the goods or services of a seller or group of sellers.

What is a trademark?

A brand that has exclusive legal protection for both its brand name and its design.