Please enter something

MKTG 101 Final Exam Terms

question

Brand
answer

a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products
question

brand equity
answer

the value of company and brand names
question

brand loyalty
answer

a consistent preference for one brand over all others
question

brand mark
answer

the elements of a brand that cannot be spoken
question

brand name
answer

that part of a brand that can be spoken, including letters, words, and numbers
question

business product (industrial product)
answer

a product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers
question

captive brand
answer

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation
question

co-branding
answer

placing two or more brand names on a product or its package
question

consumer product
answer

a product bought to satisfy an individual’s personal wants
question

convenience product
answer

a relatively inexpensive item that merits little shopping effort
question

express warranty
answer

a written guarantee
question

family branding
answer

marketing several different products under the same brand name
question

generic product name
answer

identifies a product by class or type and cannot be trademarked
question

global brand.a brand that obtains at least a third of its earnings from outside its home country
answer

is recognizable outside its home base of customers, and has publicly available marketing and financial data
question

implied warranty
answer

an unwritten guarantee that the good or service is fit for the purpose for which it was sold
question

individual branding
answer

using different brand names for different products
question

informational labeling
answer

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase
question

manufacturer’s brand
answer

the brand name of a manufacturer
question

persuasive labeling
answer

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary
question

planned obsolescence
answer

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
question

private brand
answer

a brand name owned by a wholesaler or a retailer
question

product
answer

everything, both favorable and unfavorable, that a person receives in an exchange
question

product item
answer

a specific version of a product that can be designated as a distinct offering among an organization’s products
question

product line
answer

a group of closely related product items
question

product line depth
answer

the number of product items in a product line
question

product line extension
answer

adding additional products to an existing product line in order to compete more broadly in the industry
question

product mix
answer

all products that an organization sells
question

product mix width
answer

the number of product lines an organization offers
question

product modification
answer

changing one or more of a product’s characteristics
question

service mark
answer

a trademark for a service
question

shopping product
answer

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
question

specialty product
answer

a particular item that consumers search extensively for and are very reluctant to accept substitutes
question

trademark
answer

the exclusive right to use a brand or part of a brand
question

universal product codes (UPCs)
answer

a series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products
question

unsought product
answer

a product unknown to the potential buyer or a known product that the buyer does not actively seek
question

warranty
answer

a confirmation of the quality or performance of a good or service
question

brainstorming
answer

the process of getting a group to think of unlimited ways to vary a product or solve a problem
question

business analysis
answer

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
question

commercialization
answer

the decision to market a product
question

concept test
answer

a test to evaluate a new-product idea, usually before any prototype has been created
question

decline stage
answer

a long-run drop in sales
question

development
answer

the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
question

diffusion
answer

the process by which the adoption of an innovation spreads
question

growth stage
answer

the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
question

innovation
answer

a product perceived as new by a potential adopter
question

introductory stage
answer

the full-scale launch of a new product into the marketplace
question

maturity stage
answer

a period during which sales increase at a decreasing rate
question

new product
answer

a product new to the world, the market, the producer, the seller, or some combination of these
question

new-product strategy
answer

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
question

product category
answer

all brands that satisfy a particular type of need
question

product development
answer

a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
question

product life cycle (PLC)
answer

a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
question

screening
answer

the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason
question

simulated (laboratory) market testing
answer

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market
question

simultaneous product development
answer

a team-oriented approach to new-product development
question

test marketing
answer

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
question

agents and brokers
answer

wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
question

arm’s-length relationship
answer

a relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
question

channel conflict
answer

a clash of goals and methods between distribution channel members
question

channel control
answer

a situation that occurs when one marketing channel member intentionally affects another member’s behavior
question

channel leader (channel captain)
answer

a member of a marketing channel that exercises authority and power over the activities of other channel members
question

channel members
answer

all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
question

channel partnering (channel cooperation)
answer

the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
question

channel power
answer

the capacity of a particular marketing channel member to control or influence the behavior of other channel members
question

cooperative relationship
answer

a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
question

direct channel
answer

a distribution channel in which producers sell directly to consumers
question

discrepancy of assortment
answer

the lack of all the items a customer needs to receive full satisfaction from a product or products
question

discrepancy of quantity
answer

the difference between the amount of product produced and the amount an end user wants to buy
question

dual distribution (multiple distribution)
answer

the use of two or more channels to distribute the same product to target markets
question

exclusive distribution
answer

a form of distribution that establishes one or a few dealers within a given area
question

horizontal conflict
answer

a channel conflict that occurs among channel members on the same level
question

integrated relationship
answer

a relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
question

intensive distribution
answer

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
question

logistics
answer

the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies
question

marketing channel (channel of distribution)
answer

a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
question

merchant wholesaler
answer

an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
question

retailer
answer

a channel intermediary that sells mainly to consumers
question

selective distribution
answer

a form of distribution achieved by screening dealers to eliminate all but a few in any single area
question

spatial discrepancy
answer

the difference between the location of a producer and the location of widely scattered markets
question

strategic channel alliance
answer

a cooperative agreement between business firms to use the other’s already established distribution channel
question

temporal discrepancy
answer

a situation that occurs when a product is produced but a customer is not ready to buy it
question

vertical conflict
answer

a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.
question

atmosphere
answer

the overall impression conveyed by a store’s physical layout, decor, and surroundings
question

automatic vending
answer

the use of machines to offer goods for sale
question

buyer
answer

a department head who selects the merchandise for his or her department and may also be responsible for promotion and personnel
question

category killers
answer

specialty discount stores that heavily dominate their narrow merchandise segment
question

chain stores
answer

stores owned and operated as a group by a single organization
question

convenience store
answer

a miniature supermarket, carrying only a limited line of high-turnover convenience goods
question

department store
answer

a store housing several departments under one roof
question

destination stores
answer

stores that consumers purposely plan to visit
question

direct marketing (direct response marketing)
answer

techniques used to get consumers to make a purchase from their home, office, or other nonretail setting
question

direct retailing
answer

the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties
question

discount store
answer

a retailer that competes on the basis of low prices, high turnover, and high volume
question

drugstore
answer

a retail store that stocks pharmacy-related products and services as its main draw
question

factory outlet
answer

an off-price retailer that is owned and operated by a manufacturer
question

franchise
answer

the right to operate a business or to sell a product
question

franchisee
answer

an individual or business that is granted the right to sell another party’s product
question

franchisor
answer

the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product
question

full-line discount store
answer

a retailer that offers consumers very limited service and carries a broad assortment of well-known, nationally branded “hard goods”
question

gross margin
answer

the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
question

independent retailers
answer

retailers owned by a single person or partnership and not operated as part of a larger retail institution
question

mass merchandising
answer

a retailing strategy using moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of products
question

nonstore retailing
answer

shopping without visiting a store
question

off-price retailer
answer

a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges
question

online retailing
answer

a type of shopping available to consumers with personal computers and access to the Internet
question

product offering
answer

the mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix
question

retailing
answer

all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
question

retailing mix
answer

a combination of the six Ps—product, place, promotion, price, presentation, and personnel—to sell goods and services to the ultimate consumer
question

scrambled merchandising
answer

the tendency to offer a wide variety of nontraditional goods and services under one roof
question

specialty discount store
answer

a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover
question

specialty store
answer

a retail store specializing in a given type of merchandise
question

supercenter
answer

a retail store that combines groceries and general merchandise goods with a wide range of services
question

supermarket
answer

a large, departmentalized, self-service retailer that specializes in food and some nonfood items
question

telemarketing
answer

the use of the telephone to sell directly to consumers
question

warehouse membership clubs
answer

limited-service merchant wholesalers that sell a limited selection of brand name appliances, household items, and groceries on a cash-and-carry basis to members, usually small businesses and groups
question

advertising
answer

impersonal, one-way mass communication about a product or organization that is paid for by a marketer
question

AIDA concept
answer

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action
question

Channel
answer

a medium of communication—such as a voice, radio, or newspaper—for transmitting a message
question

Communication
answer

the process by which meanings are exchanged or shared through a common set of symbols
question

competitive advantage
answer

the unique set of features of a company and its products that are perceived by the target market as significant and superior to the competition
question

decoding
answer

interpretation of the language and symbols sent by the source through a channel
question

encoding
answer

the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs
question

feedback
answer

the receiver’s response to a message
question

integrated marketing communications (IMC)
answer

the careful coordination of all promotional messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumer
question

interpersonal communication
answer

direct, face-to-face communication between two or more people
question

mass communication
answer

the communication of a concept or message to large audiences
question

noise
answer

anything that interferes with, distorts, or slows down the transmission of information
question

personal selling
answer

a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
question

promotion
answer

communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
question

promotional mix
answer

the combination of promotional tools—including advertising, public relations, personal selling, and sales promotion—used to reach the target market and fulfill the organization’s overall goals
question

promotional strategy
answer

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion
question

public relations
answer

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
question

publicity
answer

public information about a company, product, service, or issue appearing in the mass media as a news item
question

pull strategy
answer

a marketing strategy that stimulates consumer demand to obtain product distribution
question

push strategy
answer

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise
question

receiver
answer

the person who decodes a message
question

sales promotion
answer

marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness
question

sender
answer

the originator of the message in the communication process
question

advergaming
answer

placing advertising messages in Web-based or video games to advertise or promote a product, service, organization, or issue
question

advertising appeal
answer

a reason for a person to buy a product
question

advertising campaign
answer

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
question

advertising objective
answer

a specific communication task that a campaign should accomplish for a specified target audience during a specified period
question

advertising response function
answer

a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns
question

advocacy advertising
answer

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
question

audience selectivity
answer

the ability of an advertising medium to reach a precisely defined market
question

cause-related marketing
answer

a type of sponsorship involving the association of a for-profit company and a nonprofit organization; through the sponsorship, the company’s product or service is promoted, and money is raised for the nonprofit
question

comparative advertising
answer

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes
question

competitive advertising
answer

a form of advertising designed to influence demand for a specific brand
question

continuous media schedule
answer

a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle
question

cooperative advertising
answer

an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand
question

cost per contact
answer

the cost of reaching one member of the target market
question

crisis management
answer

a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
question

flighted media schedule
answer

a media scheduling strategy in which ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times
question

frequency
answer

the number of times an individual is exposed to a given message during a specific period
question

infomercial
answer

a 30-minute or longer advertisement that looks more like a television talk show than a sales pitch
question

institutional advertising
answer

a form of advertising designed to enhance a company’s image rather than promote a particular product
question

media mix
answer

the combination of media to be used for a promotional campaign
question

media planning
answer

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience
question

media schedule
answer

designation of the media, the specific publications or programs, and the insertion dates of advertising
question

medium
answer

the channel used to convey a message to a target market
question

pioneering advertising
answer

a form of advertising designed to stimulate primary demand for a new product or product category
question

product advertising
answer

a form of advertising that touts the benefits of a specific good or service
question

product placement
answer

a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events
question

pulsing media schedule
answer

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods
question

reach
answer

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
question

seasonal media schedule
answer

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used
question

sponsorship
answer

a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image
question

unique selling proposition
answer

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
question

cold calling
answer

a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status
question

consumer sales promotion
answer

sales promotion activities targeting the ultimate consumer
question

coupon
answer

a certificate that entitles consumers to an immediate price reduction when they buy the product
question

follow-up
answer

the final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and buyers’ employees are properly trained to use the products
question

frequent buyer program
answer

a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service
question

lead generation (prospecting)
answer

identification of those firms and people most likely to buy the seller’s offerings
question

lead qualification
answer

determination of a sales prospect’s (1) recognized need, (2) buying power, and (3) receptivity and accessibility
question

loyalty marketing program
answer

a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers
question

needs assessment
answer

a determination of the customer’s specific needs and wants and the range of options the customer has for satisfying them
question

negotiation
answer

the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement
question

networking
answer

a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations
question

point-of-purchase (P-O-P) display
answer

a promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying
question

preapproach
answer

a process that describes the “homework” that must be done by a salesperson before he or she contacts a prospect
question

premium
answer

an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
question

push money
answer

money offered to channel intermediaries to encourage them to “push” products—that is, to encourage other members of the channel to sell the products
question

rebate
answer

a cash refund given for the purchase of a product during a specific period
question

referral
answer

a recommendation to a salesperson from a customer or business associate
question

relationship selling (consultative selling)
answer

a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
question

sales presentation
answer

a formal meeting in which the salesperson presents a sales proposal to a prospective buyer
question

sales process (sales cycle)
answer

the set of steps a salesperson goes through in a particular organization to sell a particular product or service
question

sales proposal
answer

a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs
question

sampling
answer

a promotional program that allows the consumer the opportunity to try a product or service for free
question

trade allowance
answer

a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers
question

trade sales promotion
answer

sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer
question

average total cost (ATC)
answer

total costs divided by quantity of output
question

average variable cost (AVC)
answer

total variable costs divided by quantity of output
question

break-even analysis
answer

a method of determining what sales volume must be reached before total revenue equals total costs
question

demand
answer

the quantity of a product that will be sold in the market at various prices for a specified period
question

elastic demand
answer

a situation in which consumer demand is sensitive to changes in price
question

elasticity of demand
answer

consumers’ responsiveness or sensitivity to changes in price
question

extranet
answer

a private electronic network that links a company with its suppliers and customers
question

fixed cost
answer

a cost that does not change as output is increased or decreased
question

inelastic demand
answer

a situation in which an increase or a decrease in price will not significantly affect demand for the product
question

keystoning
answer

the practice of marking up prices by 100 percent, or doubling the cost
question

marginal cost (MC)
answer

the change in total costs associated with a one-unit change in output
question

marginal revenue (MR)
answer

the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output
question

market share
answer

a company’s product sales as a percentage of total sales for that industry
question

markup pricing
answer

the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
question

prestige pricing
answer

charging a high price to help promote a high-quality image
question

price
answer

that which is given up in an exchange to acquire a good or service
question

price equilibrium
answer

the price at which demand and supply are equal
question

profit
answer

revenue minus expenses
question

profit maximization
answer

a method of setting prices that occurs when marginal revenue equals marginal cost
question

return on investment (ROI)
answer

net profit after taxes divided by total assets
question

revenue
answer

the price charged to customers multiplied by the number of units sold
question

selling against the brand
answer

stocking well-known branded items at high prices in order to sell store brands at discounted prices
question

status quo pricing
answer

a pricing objective that maintains existing prices or meets the competition’s prices
question

supply
answer

the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
question

unitary elasticity
answer

a situation in which total revenue remains the same when prices change
question

variable cost
answer

a cost that varies with changes in the level of output
question

yield management systems (YMS)
answer

a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
question

bait pricing
answer

a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
question

base price
answer

the general price level at which the company expects to sell the good or service
question

basing-point pricing
answer

a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
question

cash discount
answer

a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
question

consumer penalty
answer

an extra fee paid by the consumer for violating the terms of the purchase agreement
question

cumulative quantity discount
answer

a deduction from list price that applies to the buyer’s total purchases made during a specific period
question

delayed-quotation pricing
answer

a price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or delivered
question

escalator pricing
answer

a price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made
question

flexible pricing (variable pricing)
answer

a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
question

FOB origin pricing
answer

a price tactic that requires the buyer to absorb the freight costs from the shipping point (“free on board”)
question

freight absorption pricing
answer

a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
question

functional discount (trade discount)
answer

a discount to wholesalers and retailers for performing channel functions
question

joint costs
answer

costs that are shared in the manufacturing and marketing of several products in a product line
question

leader pricing (loss leader-pricing)
answer

a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
question

noncumulative quantity discount
answer

a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
question

odd-even pricing (psychological pricing)
answer

a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
question

penetration pricing
answer

a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
question

predatory pricing
answer

the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
question

price bundling
answer

marketing two or more products in a single package for a special price
question

price fixing
answer

an agreement between two or more firms on the price they will charge for a product
question

price lining
answer

the practice of offering a product line with several items at specific price points
question

price shading
answer

the use of discounts by salespeople to increase demand for one or more products in a line
question

price skimming
answer

a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
question

price strategy
answer

a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
question

product line pricing
answer

setting prices for an entire line of products
question

promotional allowance (trade allowance)
answer

a payment to a dealer for promoting the manufacturer’s products
question

quantity discount
answer

a price reduction offered to buyers buying in multiple units or above a specified dollar amount
question

rebate
answer

a cash refund given for the purchase of a product during a specific period
question

seasonal discount
answer

a price reduction for buying merchandise out of season
question

single-price tactic
answer

a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
question

status quo pricing
answer

charging a price identical to or very close to the competition’s price
question

two-part pricing
answer

a price tactic that charges two separate amounts to consume a single good or service
question

unbundling
answer

reducing the bundle of services that comes with the basic product
question

unfair trade practice acts
answer

laws that prohibit wholesalers and retailers from selling below cost
question

uniform delivered pricing
answer

a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
question

value-based pricing
answer

setting the price at a level that seems to the customer to be a good price compared to the price of other options
question

zone pricing
answer

a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone