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Marketing Mngt2
Vocabulary Terms Chpt 11
Question | Answer |
---|---|
settign initial high prices for your new product in order to scope out the buyer | Market skimming pricing |
setting initial low prices so a lot of people will buy your product quickly | market penetrating pricing |
pricing different items within your product line at different values. ie Michael Kors shoe collection | product line pricing |
offering additional "add on" products to accompany the product ex GPS navigation | optional product pricing |
pricing products that have to be used with the main product ex; razors | captive product pricing |
pricing low-value byproducts to get rid of them | by-product pricing |
pricing bundles of products sold together ie; combo meal | product bundle pricing |
a reduction in the price a person pays for a product | discount |
reducing or allowing customers to trade in a product, in reward of the customer | allowance |
adjusting prices to allow for differences in customers, products, or locations | segmented pricing |
when customers belive in the psycological effect of a product rather than economic ie; $3 worth od scent for $100 | psychological pricing |
prices customers keep in their mind and refer to when looking at a product | reference pricing |
list price of their product below normal price to create buying excitement | promotional pricing |
setting prices all around the world | geographical pricing |
goods were placed free on board and customer must pay freight costs | FOB orgin pricing |
company charges same price plus freight to everyone | uniform- delivered pricing |
the more distant the zone, the higher the price | zone pricing |
a company chooses a city and anything from that city to the customer costs money | basing point pricing |
seller doesnt apply any freight charges bcause they are urgent to get the business | freight- absorption pricing |
adjusting prices to fit the needs of individual customers and situations | dynamic pricing |