Marketing – Pricing Strategies Chapter 26 Vocabulary – Flashcards
Unlock all answers in this set
Unlock answersquestion
Markup
answer
generally expressed as a percentage is the difference between an items cost and sale price.
question
One - Price Policy
answer
One in which customers pay different prices.
question
Flexible - Price Policy
answer
one in which customers pay different prices for the same type or amount of merchandise.
question
Skimming Pricing
answer
a pricing policy that sets a very high price for a new product.
question
Penetration Pricing
answer
the price for a new product is set very low.
question
Product Mix Pricing Strategies
answer
adjusting prices to maximize the profitablility for a group of products rather than for just one item.
question
Price Lining
answer
pricing technique that sets a limited number of prices for specific groups or lines of merchandise.
question
Bundle Pricing
answer
a company offers several complementary or corresponding products in a package that is sold at a single price.
question
Geographical Pricing
answer
refers to price adjustments required because of different shipping agreements.
question
Segmented Pricing Strategy
answer
uses two or more different prices for a product though there is no difference in cost.
question
Psychological Pricing
answer
are pricing techniques that help create an illusion for customers.
question
Prestige Pricing
answer
sets higher than average prices to suggest status and high quality to the consumer
question
Everyday Low Prices (EDLP)
answer
low prices set on a consistent basis with no intention of raising them or offering discounts in the future
question
Promotional Pricing
answer
generally used in conjunction with sales promotions wherein prices reduced for a short time
question
Allocated
answer
distribute according to a plan or set apart for a special purpose.
