Marketing – Pricing Strategies Chapter 26 Vocabulary

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

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