group 6
Cards (10)
- COST-PLUS PRICINGIt's a pricing strategy where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.
- MARKUPSIt's a pricing strategy where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.
- COST-ORIENTED PRICING OF NEW PRODUCTSCertainly costs are an important component ofpricing. However, the process of determining costsand setting a price based on costs does not takeinto account what the customer is willing to pay atthe marketplace.
- QUANTITY DISCOUNTSReductions in base price given as the result of a buyer purchasing some predetermined quantity of merchandise. A noncumulative quantity discount applies to each purchase and is intended to encourage buyers to make larger purchases.
- SEASONAL DISCOUNTSPrice reductions given for out-of-season merchandise. The intention of such discounts is to spread demand over the year. not always straightforward. This strategy aims to drive impulse purchases of the large- ticket item, rather than spurring sales during the off-season.
- CASH DISCOUNTSAre reductions on base price given to customers for paying cash or within some short time period.
- TRADE DISCOUNTSAre price reductions given to middlemen (e.g., wholesalers, industrial distributors, retailers) to encourage them to stock and give preferred treatment to an organization’s products.
- PERSONAL ALLOWANCESSimilar strategies aimed at middlemen. Their purpose is to encourage middlemen to aggressively promote the organization’s products.
- TRADE-IN ALLOWANCESReduce the base price of a product or service. These are often used to help the seller negotiate the best price with a buyer.
- PRICE BUNDLINGVery popular pricing strategy. The marketer groups similar or complementary products and charges a total price that is lower than if they were sold separately.