CHAPTER 8

• The strategy ofsetting a high price for a comapanys product backed up by a strong promotional effort is called?

  MARKET SKIMMING PRICING
• he strategy of setting a low price for a companys product also backed up by a strong promotional support is called?

  MARKET PENETRATION PRICING
• selling o high-quality product at a low price is called?

  PREMIUM PRICING STRATEGY
• seling a low quality product aT o high price is known as?

  GOOD VALUE PRICING STRATEGY
• "selling a low "quality product at a low price is known as?

  ECONOMY PRICING STRATEGY
• Itis the primary consideration under cost-based pricing

  COST
• What are the Three pricing approaches?

  COST PLUS PRICING BREAK EVEN PRICING TARGET PROFIT PRICING
• Buying decision will always be based upon careful analysis and evaluation of different offers from competing sellers

  COMPETETION BASED PRICESTRATEGY
• In this pricing approach, a company bases its price largely on the prices of competitors without due regard to its own costs and to its own demand.

  GOING RATE PRICING
• This pricing approach is popular when firms are asked to bid for jobs and would be most applicable for service-oriented enterprises like construction, catering services, travel and tours, and the like.

  SEALED BID PRICING
• In this pricing strategy, a company offers a product in two or more prices, allowing for differences in customers, locations, time, or products but not necessarily based on differences in cost.

  SEGMENTED PRICING
• Is a strategy in which different customers pay different rates or prices for the same product or service. Example: Enchanted Kingdom charges different rates for children, students, adults, and senior citizens


  CUSTOMER SEGMENTED PRICING
• Is another strategy in which different versions of a product or service are priced differently

  PRODUCT FORM PRICING
• different locations are priced differently, even though the cost of offering each location is the same.

  LOCATION PRICING
• varies the price of a certain product according to the time or season of the year.

  TIME PRICING
• This pricing strategy looks not only into the economics of pricing but also on the psychology of pricing.

  PSYCHOLOGICAL PRICING
• Sometimes a company decides to price some of its items below their regular list price, or at times even below cost, to attract customer traffic.

  PROMOTINAL PRICING
• This pricing strategy is used by companies operating in different areas of the country or in different countries of the world.

  GEOGRAPHICAL PRICING
• This approach offers to sell optional or accessory products along with a main product.

  OPTIONAL PRODUCT PRICING
• Instead of offering accessories to the main product, captiveproduct pricing would offer products that are essential to the main product itself

  CAPTIVE PRODUCT PRICING
• is a surplus product or item coming from the main product itself

  BY PRODUCT PRICING
• In this pricing techniques, a company combines several of its products into a bundle and offers the bundle for sale at a reduced price.

  PRODUCT BUNDLE PRICING
• This pricing strategy allows a company to reduce prices to reward customers for certain responses like paying promptly or promoting the companys products or services

  DISCOUNT PRICING
• is a price reduction given to buyers who pay their bills

  CASH DISCOUNT
• These are price reductions given to buyers who purchase a product in large volumes.

  QUANTITY DUSCOUNTS
• is a price reduction given to buyers who purchase merchandise or services that are out of season

  SEASONAL DISCOUTN
• In this pricing strategy, a company offers a product in two or more prices, allowing for differences in customers, locations, time, or products but not necessarily based on differences in cost

  SEGMENTED PRICING