Definitions
Setting prices based on how much it costs to make or deliver a product, then adding a markup for profit.
Cost-Based Pricing
What is the study of how individuals make purchasing decisions
Consumer Behavior
what external factor affects pricing due to changes in economic conditions?
Inflation
what is the strategy of setting prices based on production costs plus a markup?
Cost-plus Pricing
what is the term for segmenting customers based on demographics?
Market Segmentation
What pricing strategy involves setting prices based on competitors?
Competitive Pricing
What factor influences consumer buying based on brand perception?
Brand loyalty
what is the term for government-imposed prices restrictions?
Price control
what is a psychological pricing strategy where item are priced just below a whole number?
Odd-even Pricing
What is the role of price in positioning a brand in the market?
Price positioning
What is the term for pricing a product low to attract customers and increase market share?
Penetration Pricing
what is the psychological pricing strategy that uses prices like $9.99?
Charm pricing
what market structure leads to businesses being price takers?
Perfect competition
What is the term for pricing based on perceived customer value?
Value-Based Pricing
what is the pricing strategy used to build long-term customer loyalty?
Loyalty Pricing
What is it called when businesses adjust prices based on demand?
Dynamic pricing
inelastic Demand
how do tariffs impact on imported goods?
Increase Cost
what is a pricing strategy that offers lower prices for bulk purchases?
Bundle Pricing
What is the term for adjusting pricing based on different customer segments?
Price Discrimination
What pricing strategy sets the price high initially and lowers it over time?
Price skimming
what economic principle suggest that lower prices increase quantity demanded?
law of Demand
what is the impact of supply chain disruption on pricing?
Higher prices Due to Scarcity
Selling a product at a loss to attract customers to other profitable products.
Loss leader pricing
Charging customer a recurring fee for continued access to a product or service
subscription-based Pricing model