MKTG 3110 - Pricing Strategies

These flashcards cover essential terms and concepts regarding pricing strategies, objectives, legal and ethical issues in pricing as discussed in the MKTG 3110 lecture.

Pricing Strategy

The method companies use to price their products or services to maximize profitability.

Volume Maximization

Setting prices low to encourage a greater volume of purchases.

Survival Pricing

Lowering prices so that revenue covers costs, allowing a firm to endure tough times.

Reference Prices

Prices that consumers consider reasonable and fair for a product.

Under Pricing

Charging less than customers are willing to pay, often used for last-minute sales.

Escalator Clause

A contractual agreement allowing price increases under specified conditions.

Shrinkflation

Items decrease in size while prices remain the same or increase.

Odd Pricing

Setting prices a few cents below the dollar to create a perception of a deal.

Even Pricing

Prices set at whole dollar amounts to convey luxury or premium quality.

Prestige Pricing

Setting product prices higher than competitors to signal superior quality.

Loss-Leader Pricing

Pricing products low to encourage sales of other related items.

Seasonal Discounts

Price reductions for products or services out of peak season.

Price Bundling

Marketing two or more products together at a single price.

Dynamic Pricing

Real-time pricing based on supply and demand conditions.

Name-Your-Own-Price Auction

A bidding system where consumers bid at the maximum price they are willing to pay.

Tariffs

Taxes on imports and exports aimed at protecting domestic industries.

Grey Market

Sale of branded products through legal but unauthorized distribution channels.

Dumping

Selling exports at lower prices than the same product in the domestic market.

Price Discrimination

Charging different prices to different customers for the same product, illegal if it harms competition.

Predatory Pricing

Setting low prices to attract a broad market and undermine competition.

Deceptive Pricing

Illegally misleading customers regarding price promotions.

Price Fixing

Collusion between companies to set prices at an agreed level.