Price Basics
One of the four P's of the Marketing Mix
What is Product Place Price and Promotion?
The primary goal of pricing
What is earning a profit/making money?
Strategy of setting high prices when product is new
What is Skimming Pricing?
Policy where all customers pay the same price
What is One-Price Policy?
When competitors agree on price ranges, this illegal practice is called ___
What is Price Fixing?
The value of money placed on a good or service
What is Price?
Profit = ?
What is Revenue minus Expenses?
Strategy that sets different prices for customers in different geographic locations
What is Geographical Pricing?
Policy that allows negotiation and different prices
What is Flexible Price Policy?
The federal law that outlawed price fixing and monopolies
What is the Sherman Antitrust Act?
Price should reflect what customers are ___?
What is willing to pay?
What does ROI stand for?
What is Return on Investment?
Offering customers a choice of product versions at different price points (Example Gas Stations pricing)
What is Price Lining?
Pricing tactic that uses prices like $9.99 instead of $10
What is Odd-Even Pricing?
This is the practice of charging different prices to different customers for the same product in similar situations?
What is Price Discrimination?
What is the relationship between price and value?
What is that value determines how much customers will spend?
Define market share
What is a firm's percentage of total sales in a market?
Selling a main product at low/no profit to sell expensive add-ons
What is Captive Product Pricing?
Selling items together at a lower combined price
What is Bundle Pricing?
This 1936 law strengthened provisions against price discrimination
What is the Robinson-Patman Act?
Define "prestige pricing"
What is using high prices to suggest quality, status, and exclusiveness?
Name three market factors that affect prices
What are Costs & Expenses, Supply & Demand, Consumer Perception, and Competition?
Discounting multiple units purchased at once to encourage bulk buying
What is Multiple-Unit Pricing?
Temporary price reductions to attract customers
What is Promotional Pricing?
What is "bait-and-switch" advertising?
What is advertising a low price but having no stock, then offering a more expensive substitute?