MKT STRAT chap 11

question

value

answer

ratio of the bundle of benefits a customer receives from an offering compared to the cost incurred by the customer in acquiring that bundle of benefits

question

what type of value does the firm have to have in order to keep customers loyal

answer

High value

question

cost leader ship

answer

A marketing strategy in which a firm utilizes its core cost of inches to gain in advantage over competitors due to the flexibility in pricing strategies as well as ability to translate cost savings to the bottom line

question

what are the six elements of pricing of decisions

answer

Establish pricing objectives in related strategies, select pricing tactic, set the exact price, determine channel discounts in ounces, execute price changes, and understand legal considerations in pricing

question

pricing objectives

answer

The desired or expected result associated with a pricing strategy

question

market share

answer

The percentage of total category sales accounted for by firms

question

penetration pricing

answer

One affirms objective is to gain as much marketshare as possible. market share maximization

question

what are prices normally going to be when a product enters the market under the penetration pricing

answer

they're going to start low and then eventually rise

question

price skimming

answer

Addresses the objective of entering a market at a relatively higher price point

question

what is price related to in the price skimming strategy

answer

Price and quality relationship

question

when is price skimming most appropriate

answer

in a focus category

question

Why is price skimming used in niche markets

answer

because they attract fewer and less aggressive competitors and I can focus on higher prices

question

Target return on investment (ROI)

answer

A pricing strategy in which a bottom-line profit is established first and then pricing is set to achieve that target. profit maximization

question

Price elasticity of demand

answer

Measure of customers price sensitivity estimated by dividing relative changes in quantity sold by relative changes in price

question

competitor based pricing

answer

pricing strategy in which a firm decides to price at some market average price in contacts with prices of competitors. benchmark the competition.

question

Price war

answer

when a company purposely makes pricing decisions to undercut one or more competitors and gain sales in that market share

question

stability pricing

answer

affirmative just find a neutral setpoint for price that is needed or low enough to raise the ire of competitors nor high enough to put the value proposition at risk with customers. value pricing

question

value pricing

answer

pricing strategy in which a firm at temps to take into account the role of price as it reflects a bundle benefits sought by the customer

question

when is a product not considered feasible when it comes to value and price

answer

Low quality high price and high-quality low price

question

product line pricing

answer

prizing tactic in which if I'm affords the marketing manager and opportunity to develop a rational pricing approach across a complete line of related items

question

Price points

answer

established for the various items in the line needed to make sense and reflect the differences and benefits offered as a customer moves up and down the product line

question

captive pricing

answer

do you need a commitment from customers to a basic product or system that requires continual purchase of peripherals to operate

question

Price bundling

answer

when customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately

question

Reference Pricing

answer

I pricing strategy in which a firm gives customers comparative prices when considering purchase a product so they are not viewing a price in isolation from prices of other choices

question

prestige pricing

answer

A pricing tactic that lands prestige to a product or brand by virtue of a price relatively higher than the competition

question

odd pricing

answer

The price is not expressed in hole dollars

question

even pricing

answer

whole dollar amount

question

psychological pricing

answer

creating a perception about price merely for the image the numbers provide the customer

question

One price strategy

answer

pricing tactic in which the price marketed on a good is what it typically sells for

question

variable pricing

answer

customers are allowed to haggle about prices

question

every day low pricing

answer

pricing tactic that entails relatively low, constant prices at a minimal spinning on promotional efforts

question

high low pricing

answer

pricing strategy in which the retailers offer frequent discounts, primarily through sales promotions, to your regular prices

question

Auction pricing

answer

pricing tactic in which individuals competitively bid against each other in the purchase goes to the highest bidder

question

reverse auctions

answer

when sellers bid prices to buyers in purchase typically goes to the lowest bidder

question

Cost-plus pricing (markup pricing)

answer

build surprised by adding a standardized markup on top of cost of an offering

question

Mark up on sales price

answer

uses the sale price as a basis for calculating the markup percentage

question

average cost pricing

answer

A pricing decision made by identifying all costs associated with an offering to come up with what the average cost of a single unit might be

question

Target return pricing

answer

decision made by considering it fixed and variable cost and then demand forecasting to determine the price per unit

question

discounts

answer

immediate reductions in price provided to purchasers

question

allowances

answer

remit money to purchasers after the fact

question

cash discounts

answer

A percentage discount off invoice to in elicit quicker payment by customer

question

trade discounts

answer

an incentive to a channel member for performing some function in the channel that benefits the seller

question

Quantity discounts

answer

discounts taken off an invoice price based on different levels of product purchased

question

seasonal discounts

answer

discounts that reward the purchaser for shifting part of the inventory storage function away from the manufacturer

question

promotional allowances

answer

Sales promotions initiated by the manufacturer and carried out by the retailer, who is then compensated by the manufacturer.

question

FOB pricing

answer

determination of title transfer and freight payment based on shipping location

question

uniform delivered pricing

answer

when the same delivery fee is charged to customers regardless of geographic location within a set area

question

zone pricing

answer

when shippers set up geographical pricing zones based on the distance from the shipping location

question

just noticeable difference

answer

The amount of price increase that can be taken without affecting customer demand

question

price-fixing

answer

when company collude to set prices at a mutually beneficial high-level

question

Price discrimination

answer

occurs when a seller offers different prices to different customers without a substantive bias

question

deceptive pricing

answer

knowingly stay in prices in a manner that gives false impressions to customer

1 of 52

question

value

answer

ratio of the bundle of benefits a customer receives from an offering compared to the cost incurred by the customer in acquiring that bundle of benefits

question

what type of value does the firm have to have in order to keep customers loyal

answer

High value

question

cost leader ship

answer

question

what are the six elements of pricing of decisions

answer

question

pricing objectives

answer

The desired or expected result associated with a pricing strategy

question

market share

answer

The percentage of total category sales accounted for by firms

question

penetration pricing

answer

One affirms objective is to gain as much marketshare as possible. market share maximization

question

what are prices normally going to be when a product enters the market under the penetration pricing

answer

they're going to start low and then eventually rise

question

price skimming

answer

Addresses the objective of entering a market at a relatively higher price point

question

what is price related to in the price skimming strategy

answer

Price and quality relationship

question

when is price skimming most appropriate

answer

in a focus category

question

Why is price skimming used in niche markets

answer

because they attract fewer and less aggressive competitors and I can focus on higher prices

question

Target return on investment (ROI)

answer

A pricing strategy in which a bottom-line profit is established first and then pricing is set to achieve that target. profit maximization

question

Price elasticity of demand

answer

Measure of customers price sensitivity estimated by dividing relative changes in quantity sold by relative changes in price

question

competitor based pricing

answer

pricing strategy in which a firm decides to price at some market average price in contacts with prices of competitors. benchmark the competition.

question

Price war

answer

when a company purposely makes pricing decisions to undercut one or more competitors and gain sales in that market share

question

stability pricing

answer

affirmative just find a neutral setpoint for price that is needed or low enough to raise the ire of competitors nor high enough to put the value proposition at risk with customers. value pricing

question

value pricing

answer

pricing strategy in which a firm at temps to take into account the role of price as it reflects a bundle benefits sought by the customer

question

when is a product not considered feasible when it comes to value and price

answer

Low quality high price and high-quality low price

question

product line pricing

answer

prizing tactic in which if I'm affords the marketing manager and opportunity to develop a rational pricing approach across a complete line of related items

question

Price points

answer

established for the various items in the line needed to make sense and reflect the differences and benefits offered as a customer moves up and down the product line

question

captive pricing

answer

do you need a commitment from customers to a basic product or system that requires continual purchase of peripherals to operate

question

Price bundling

answer

when customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately

question

Reference Pricing

answer

I pricing strategy in which a firm gives customers comparative prices when considering purchase a product so they are not viewing a price in isolation from prices of other choices

question

prestige pricing

answer

A pricing tactic that lands prestige to a product or brand by virtue of a price relatively higher than the competition

question

odd pricing

answer

The price is not expressed in hole dollars

question

even pricing

answer

whole dollar amount

question

psychological pricing

answer

creating a perception about price merely for the image the numbers provide the customer

question

One price strategy

answer

pricing tactic in which the price marketed on a good is what it typically sells for

question

variable pricing

answer

customers are allowed to haggle about prices

question

every day low pricing

answer

pricing tactic that entails relatively low, constant prices at a minimal spinning on promotional efforts

question

high low pricing

answer

pricing strategy in which the retailers offer frequent discounts, primarily through sales promotions, to your regular prices

question

Auction pricing

answer

pricing tactic in which individuals competitively bid against each other in the purchase goes to the highest bidder

question

reverse auctions

answer

when sellers bid prices to buyers in purchase typically goes to the lowest bidder

question

Cost-plus pricing (markup pricing)

answer

build surprised by adding a standardized markup on top of cost of an offering

question

Mark up on sales price

answer

uses the sale price as a basis for calculating the markup percentage

question

average cost pricing

answer

A pricing decision made by identifying all costs associated with an offering to come up with what the average cost of a single unit might be

question

Target return pricing

answer

decision made by considering it fixed and variable cost and then demand forecasting to determine the price per unit

question

discounts

answer

immediate reductions in price provided to purchasers

question

allowances

answer

remit money to purchasers after the fact

question

cash discounts

answer

A percentage discount off invoice to in elicit quicker payment by customer

question

trade discounts

answer

an incentive to a channel member for performing some function in the channel that benefits the seller

question

Quantity discounts

answer

discounts taken off an invoice price based on different levels of product purchased

question

seasonal discounts

answer

discounts that reward the purchaser for shifting part of the inventory storage function away from the manufacturer

question

promotional allowances

answer

Sales promotions initiated by the manufacturer and carried out by the retailer, who is then compensated by the manufacturer.

question

FOB pricing

answer

determination of title transfer and freight payment based on shipping location

question

uniform delivered pricing

answer

when the same delivery fee is charged to customers regardless of geographic location within a set area

question

zone pricing

answer

when shippers set up geographical pricing zones based on the distance from the shipping location

question

just noticeable difference

answer

The amount of price increase that can be taken without affecting customer demand

question

price-fixing

answer

when company collude to set prices at a mutually beneficial high-level

question

Price discrimination

answer

occurs when a seller offers different prices to different customers without a substantive bias

question

deceptive pricing

answer

knowingly stay in prices in a manner that gives false impressions to customer

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MKT STRAT chap 11

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