Chp. 14: Pricing Fundamentals
This is the only revenue-generating "P" in the marketing mix.
What is price?
This pricing strategy involves keeping prices consistently low instead of offering frequent sales or coupons (e.g., Walmart, Aldi).
What is every day low pricing (EDLP)?
This term refers to the entire network of organizations and activities that move a product from supplier to consumer.
What is the supply chain?
This term describes all the business activities that make it possible for you to buy things, whether in-store, online, or both.
What is retailing?
Name the three additional P's in the 7 P’s of retail strategy.
What are personnel, processes, and presentation?
Name any one of the 5 C's of pricing.
What are company objectives, costs, customers, competition, and channel members?
Department stores like Macy’s and Kohl’s rely on frequent promotions and markdowns which is an example of this pricing strategy/approach.
What is high–low pricing?
Warby Parker sells their glasses directly to consumers through its own website which provides an example of this type of supply chain.
What is a direct supply chain?
This retail approach blends online, mobile, and in-store experiences into one seamless system.
What is omnichannel retailing?
Lighting, music, and store layout contribute to this sensory “P.”
What is presentation?
If a small price increase causes almost no change in demand, that demand is said to be _______.
What is inelastic?
Streaming services that start with a low subscription price to attract users, then raise it once they’re hooked, are using this approach.
What is penetration pricing?
When two retailers like Target and Walmart compete for the same customers, it creates this type of channel conflict.
What is horizontal channel conflict?
Coca-Cola’s wide availability in restaurants, gas stations, and stores demonstrates this type of distribution strategy.
What is intensive distribution?
Focusing on providing customers with efficient mobile ordering, curbside pickup, and delivery are examples of improving this “P.”
What is process/processes?
In response to increased tariffs on their goods, Shein raised prices on their clothing. In response to this, consumers have stopped shopping at Shein as much and are turning to competitors who have not implemented as significant of price increases. In this case, Shein's small price increase caused a change in demand. Demand for Shein, then, would be described as this.
What is elastic?
These costs, such as rent or insurance, don’t change no matter how many units of a product you produce.
What are fixed costs?
When a manufacturer and retailer disagree on pricing or inventory, the conflict is considered _______.
What is vertical channel conflict?
Luxury brands like Rolex or Louis Vuitton often use this limited form of distribution.
What is exclusive distribution?
Friendly and knowledgeable sales staff contribute to this “P" in a retail environment.
What is Personnel (or People)?
This pricing approach (often used by airlines and ride-share apps) changes prices in real time based on demand.
What is dynamic pricing?
The point at which total revenue equals total cost is called the _______.
What is the break-even point?
When one member of the channel has more influence over decisions and outcomes than others, this reflects _______.
What is power in the marketing channel?
Name the three types of retailers.
Food, general merchandise, services
From robotic floor cleaners to digital coupons and AI chatbots, retailers use these tools to streamline processes and personalize the shopping experience.
What is technology?