Pricing Strategies Flashcards

Flashcards about Pricing Strategies

What is Market-Skimming Pricing?

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.

What is Product line pricing?

Setting prices across an entire product line

What is Optional product pricing?

Pricing optional or accessory products sold with the main product.

What is Captive product pricing?

Pricing products that must be used with the main product

What is By-product pricing?

Pricing low-value by-products to get rid of or make money on them

What is Product bundle pricing?

Pricing bundles of products sold together

What is Discount and allowance pricing?

Reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product

What is Segmented pricing?

Adjusting prices to allow for differences in customers, products, or locations

What is Psychological pricing?

Adjusting prices for psychological effect

What is Promotional pricing?

Temporarily reducing prices to spur short-run sales

What is Geographical pricing?

Adjusting prices to account for the geographic location of customers

What is Dynamic pricing?

Adjusting prices continually to meet the characteristics and needs of individual customers and situations

What is International pricing?

Adjusting prices for international markets.

What is Cash Discount?

A price reduction to buyers who pay their bills promptly.

What is Quantity Discount?

A price reduction to buyers who buy large volumes.

What is Functional Discount (Trade Discount)?

A sellers offers a discount to trade-channel members who perform certain functions, such as selling, storing, and record keeping.

What is Seasonal Discount?

A price reduction to buyers who buy merchandise or services out of season.

What is Trade-in allowance?

A price reduction given for turning in an old item when buying a new one.

What is Promotional allowance?

The payments or price reductions that reward dealers for participating in advertising and sales support programs.

What is Reference prices?

Prices that buyers carry in their minds and refer to when looking at a given product.

What is Robinson-Patman Act?

Seeks to prevents unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

What is Deceptive pricing?

Occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.