Pricing Concepts
This pricing strategy involves setting a price just below a round number.
Odd-Even Pricing
This refers to the amount of money paid for a good or service.
Price
This strategy is used when the goal is to create a luxury or high-quality image for a product by setting high prices.
Prestige Pricing
This type of competition focuses on factors like customer service and quality rather than price.
Non-Price Competition
This is the term for products related to or created from the core product.
Ancillary Products
This method sets prices based on the cost to produce, plus a fixed margin.
Cost Plus Pricing
This is the unique characteristic of a product that differentiates it from competitors.
Point of Differentiation
This is the pricing practice of offering several products at different price points within a product line.
The portion of a market controlled by a particular company or product is known as this.
Market Share
This strategy involves changing the image of a product relative to its competitors.
Repositioning
This is the pricing strategy used when a business charges different prices based on available capacity.
Yield Management Pricing
This term describes the additional money added to the cost of a product to set its selling price.
Mark Up
This pricing method involves selling products at a low price to attract customers into the store, with the expectation of additional purchases.
Loss-Leader Pricing
This term refers to the total income from sales, before subtracting costs.
Revenue
The total cost of producing and marketing a new product before it hits the market is called this.
Commercialization
A pricing strategy where multiple products are sold together at a lower total price.
Bundle Pricing
The process of determining the value placed on a product by consumers based on their perception and what they are willing to pay.
Consumer Preception
This term refers to the pricing method that sets prices based on customers' willingness to pay.
Target Pricing
The life cycle phase where products reach peak sales and market saturation.
Maturity
This involves segmenting the market to target specific consumer groups, often using characteristics like age and income.
Demographics
The illegal practice of colluding with competitors to control prices.
Price Fixing
The term for goods purchased for use in business operations, not by the ultimate consumer.
Business Goods
The total revenue minus the costs for producing and delivering a product is known as this.
Profit/Loss
A term for the practice of creating a perception of higher value by pricing a product just under a whole number, like $19.99.
Odd-Even Pricing
This type of product is for personal use by the end consumer, as opposed to business goods.
Consumer Goods