Pricing Strategies & Concepts

These flashcards cover key concepts and definitions relating to pricing strategies discussed in the lecture.

Target return pricing

Pricing to cover all costs and to achieve either a percentage return or a specific dollar return.

Bait pricing

A pricing strategy considered deceptive to the FTC, setting an initial low price to attract customers while having higher prices on other products.

Demand-backward pricing

A pricing method also known as market minus pricing, where the price is determined by the final value perceived by the customer.

Prestige pricing

A strategy where a higher price suggests a higher quality product.

Value-in-use pricing

Pricing based on the perceived value of the product's benefits to the customer.