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Product Line Pricing
Pricing products at different levels within the same product line based on cost differences, customer perception, and competitor pricing.
Optional Product Pricing
The practice of pricing a base product separately and offering add-ons for additional charges.
Captive Product Pricing
A pricing strategy where the main product is sold at a low price, while required secondary products are priced high.
Product Bundle Pricing
Combining multiple products into a single package at a reduced price to encourage sales of less popular items.
Value-Based Pricing
Setting prices based on the perceived value to the customer rather than on the cost of the product.
Cost-Based Pricing
A pricing method where price is determined by adding a markup percentage to the cost of the product.
Competition-Based Pricing
Setting prices based on competitors' pricing strategies, particularly in markets with similar and price-sensitive products.
Market Skimming Pricing
Setting a high initial price to maximize profit from early adopters, then lowering the price over time.
Market Penetration Pricing
Setting a low price initially to quickly gain market share, but with risks of low initial profits.
Intensive Distribution
A distribution strategy where products are made available at as many outlets as possible.
Selective Distribution
Limiting product distribution to select outlets to maintain higher levels of control.
Exclusive Distribution
A form of distribution where a product is only available through a limited number of outlets.
Self-Service
A retail format where customers handle their own shopping needs with minimal assistance.
Limited Service
A retail format in which customers receive some assistance during their shopping experience.
Full Service
A retail format that offers personalized shopping assistance for high-end or premium products.
Break-Even Analysis
A calculation to determine the point at which total revenue equals total costs.
Lifetime Value (LTV) of a Customer
The total profit a company expects to earn from a customer over the duration of their relationship.
Improvement Value Method
A value-based pricing method that calculates the perceived value based on product improvements.
Cost of Ownership Method
A method that calculates the final price of a product based on the total cost of ownership over its lifetime.
