Term
| Term: Overall sacrifice a consumer is willing to make to acquire a specific product/service |
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Definition
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Term
| What are the five Cs of pricing? |
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Definition
-Company orientation
-Customers
-Costs
-Competition
-Channel members |
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Term
| What are the different company objectives? |
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Definition
-Profit orientation
-Sales orientation
-Competitor orientation
-Customer orientation |
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Term
| Term: Focusing on target profit pricing, maximizing profits, or target return pricing |
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Definition
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Term
| Term: Using price to stimulate a certain # of sales at a certain profit per unit |
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Definition
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Term
| Term: Strategy relying primarily on economic theory that identifies a price at which profits are maximized |
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Definition
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Term
| Term: Pricing strategies designed to produce a specific return on their investment |
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Definition
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Term
| Term: Belief that increasing sales helps the firm more than increasing profits |
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Definition
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Term
| Term: Firm deliberately sets prices above the prices set for competing |
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Definition
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Term
| Term: Strategy according to the premise that they should measure themselves primarily against competition |
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Definition
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Term
| Term: Set prices to those similar to major competitors |
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Definition
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Term
| Term: Strategy where price is changed only to meet those of the competition |
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Definition
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Term
| Term: Invokes the concept of value by focusing on customer satisfaction and selling prices to match consumer expectations |
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Definition
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Term
| Term: Shows how many units of a product/service consumers will demand during a specific period of time at different prices |
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Definition
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Term
| Term: Products purchased for their status rather than functionality |
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Definition
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Term
| Term: Measures how changes in a price affect the quantity of the product demanded |
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Definition
Price elasticity of demand
% change in quantity demanded
-----------------------------
% change in price |
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Term
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Definition
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Term
| What number would be representative of elasticity? |
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Definition
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Term
| What are the influencing factors of price elasticity? |
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Definition
-Income effect
-Substitution effect
-Cross-price elasticity |
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Term
| Term: Change in quantity of a product demand due to a change in income |
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Definition
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Term
| Term: Consumers' ability to substitute products for the focal brand |
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Definition
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Term
| Term: % change in quantity of product A compared to % change in quantity of product B |
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Definition
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Term
| Term: Products whose demands are positively related (DVD and DVD player) |
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Definition
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Term
| Term: Products whose demands are negatively related |
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Definition
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Term
| Term: Costs that vary with production volume |
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Definition
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Term
| Term: Costs that remain essentially at the same level regardless of production |
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Definition
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Term
| Term: Sum of variable and fixed costs |
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Definition
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Term
| Term: Technique allowing managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales |
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Definition
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Term
| Term: Point at which the number of units sold generates just enough revenue to equal the sales |
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Definition
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Term
| Term: Price less variable cost per unit |
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Definition
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Term
| What are the different types of competition? |
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Definition
-Monopoly
-Monopolistic
-Oligopoly
-Pure |
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Term
| Term: One firm provides the product/service in a particular industry and results in less price competition |
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Definition
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Term
| Term: A few firms dominate an industry |
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Definition
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Term
| Term: 2+ firms compete primarily by lowering their prices |
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Definition
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Term
| Term: Firm sets a very low price to drive out competition |
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Definition
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Term
| Term: Many firms competing for customers in a given market with differentiated products |
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Definition
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Term
| Term: Large number of sellers of standardized products that customers perceive as substitutable |
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Definition
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Term
| Term: Employs irregular but not necessarily illegal methods |
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Definition
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Term
| What are some macro influences on pricing? |
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Definition
-Internet
-Economic factors
-Reserve price |
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Term
| Term: Minimum amount a seller will sell an item at |
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Definition
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Term
| What are the different methods for setting prices? |
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Definition
-Cost-based method
-Competitor-based method
-Value-based method
-Improvement Value method
-Cost-of-ownership method |
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Term
| Term: Determine final price to charge starting with costs |
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Definition
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Term
| Term: Prices set to reflect the way they want consumers to compare them to competitors |
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Definition
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Term
| Term: Setting prices that focus on the overall value of the product as perceived by the customer |
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Definition
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Term
| Term: Estimate of how much more/less consumers are willing to pay for a product compared to others |
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Definition
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Term
| Term: Consumers may be willing to pay more for a product because over its lifetime it will eventually cost less to own than alternatives |
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Definition
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Term
| What are the pricing strategies? |
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Definition
-EDLP (Everyday low prices)
-High-low pricing |
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Term
| Term: Companies stress the continuity of their retail prices somewhere between regular price and deep-discount prices competitors may offer |
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Definition
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Term
| Term: Prices that end in odd numbers, usually a 9 |
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Definition
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Term
| Term: Pricing strategy that relies on sales |
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Definition
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Term
| Why is high-low pricing chosen? |
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Definition
| It attracts two kinds of customers: those not afraid to pay the high price, and price-sensitive customers looking for sales |
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Term
| Term: Price against which customers compare selling price |
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Definition
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Term
| Term: When marketers establish a price floor and ceiling and a few other points in between for an entire line of products |
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Definition
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Term
| What are the new pricing strategies? |
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Definition
-Market penetration strategy
-Price skimming |
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Term
| Term: Set initial price low for the introduction of product to build market share and profits |
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Definition
| Market penetration strategy |
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Term
| Term: Prices are lowered after each group of customers purchase so they can skim the next market segment |
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Definition
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Term
| Term: Short-term methods to focus on select components of the five Cs |
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Definition
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Term
| What are some pricing tactics aimed at consumers? |
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Definition
-Markdowns
-Size discounts
-Seasonal discounts
-Coupons
-Rebates
-Lease
-Price bundling
-Leader pricing |
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Term
| Term: Reductions retailers take on the initial selling price |
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Definition
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Term
| Term: Larger quantities offer better sales |
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Definition
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Term
| Term: Price reductions offered to stimulate demand during off-peak seasons |
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Definition
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Term
| Term: Offer a discount on the price of specific items when they're purchased |
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Definition
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Term
| Term: Manufacturer issues refund as a portion of purchase price returned to buyer as cash |
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Definition
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Term
| Term: Consumers pay a fee to purchase the right to use a product for a specific amount of time |
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Definition
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Term
| Term: Selling more than one product for a single, lower price |
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Definition
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Term
| Term: Tactic that attempts to build store traffic by aggressively pricing and advertising a regularly purchased item, usually just above store cost |
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Definition
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Term
| What are some pricing tactics aimed at B2B? |
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Definition
-Seasonal discounts
-Cash discounts
-Vendor allowances
-Quantity discounts
-Uniform-delivered pricing
-Zone pricing |
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Term
| Term: Reduced invoice cost if buyer pays invoice prior to end of a discount period (3/10, n/30) |
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Definition
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Term
| Term: Offers a price reduction if they agree to feature the products in their advertising/promotional efforts |
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Definition
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Term
| Term: Fees paid to retailers simply to get new products into stores or better shelf space |
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Definition
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Term
| Term: Provides a reduced price according to the amount purchased |
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Definition
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Term
| Term: Shipper charges at one rate, no matter to where |
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Definition
| Uniform delivered pricing |
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Term
| Term: Shipper sets different prices depending on geographical division of delivery areas |
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Definition
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Term
| What are some deceptive/illegal price advertising schemes? |
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Definition
-Deceptive reference prices
-Loss leader pricing
-Bait-and-switch
-Predatory pricing
-Price discrimination
-Price fixing |
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Term
| Term: Lower reference price used to make sale look more attractive |
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Definition
| Deceptive reference prices |
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Term
| Term: Lowering price below store cost |
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Definition
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Term
| Term: Luring customers in with a very low price only to aggressively pressure them into purchasing a higher-priced model |
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Definition
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Term
| Term: When a firm sets a very low price for its product in order to drive out competition |
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Definition
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Term
| Term: When firms sell the same product to different resellers at the same price |
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Definition
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Term
| Term: Practice of colluding with other firms to control prices |
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Definition
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Term
| Term: Process by which ideas get transformed into new offers |
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Definition
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Term
| Why do firms create new products? |
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Definition
-Fashion cycles
-Market saturation
-Changing customer needs
-Managing risk through diversity
-Improving business relationships |
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Term
| Term: Process in which innovation spreads throughout a market over time |
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Definition
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Term
| Term: New products that create new markets |
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Definition
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Term
| Term: First to create a new market/product category |
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Definition
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Term
| What are the different groups to purchase a new product? |
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Definition
1. Innovators (2.5%)
2. Early adopter (13.5%)
3. Early majority (34%)
4. Late majority (34%)
5. Laggards (16%) |
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Term
| Term: Buyers who want to be the first on the block to have the new service/product |
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Definition
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Term
| Term: Customers who don't take as much risk and wait for careful review |
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Definition
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Term
| Term: New products do not become popular until this group purchases |
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Definition
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Term
| Term: Market has reached full potential once this group buys; sales tend to decrease/level off after this |
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Definition
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Term
| Term: Consumers that avoid change and rely on traditional products until they are no longer available |
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Definition
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Term
| What four factors affect the diffusion process? |
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Definition
-Relative advantage
-Compatibility
-Observability
-Complexity and trialability |
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Term
| How do firms develop new products? |
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Definition
1. Idea generation
2. Concept testing
3. Product development
4. Market testing
5. Product launch
6. Evaluation of results |
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Term
| How can new ideas be generated? |
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Definition
-Internal R&D
-R&D consortia
-Outsourcing
-Licensing
-Brainstorming
-Competitor's products
-Customer input |
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Term
| Term: Medical study that tests the safety and effectiveness of a drug/treatment |
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Definition
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Term
| Term: Taking apart a product, analyzing it, and creating a new product |
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Definition
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Term
| Term: Brief written descriptions of a product |
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Definition
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Term
| Term: Process in which a concept statement is presented to potential buyers to obtain their reactions |
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Definition
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Term
| Term: Product design; Developing a products' form and features |
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Definition
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Term
| Term: First physical form of a product |
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Definition
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Term
| Term: Firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended |
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Definition
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Term
| Term: Uses potential customers to examine prototype in a real use setting |
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Definition
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Term
| Term: Manufacturer's Suggested Retail Price |
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Definition
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Term
| What are the stages in the product life cycle? |
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Definition
1. Introduction stage
2. Growth stage
3. Maturity stage
4. Decline stage |
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Term
| Term: Defines stages that products move through during life in the marketplace |
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Definition
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Term
| Term: Life cycle stage of a freshly launched product |
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Definition
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Term
| Term: Life cycle stage in which product gains acceptance, demand, and sales; more competitors emerge |
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Definition
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Term
| Term: Life cycle stage in which industry sales reach their peak and firms try to enhance products |
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Definition
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Term
| Term: Life cycle stage that occurs if sales are not enhanced, and so the product share declines and it eventually exits the market |
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Definition
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Term
| True/False: Laggards may never adopt a new product |
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Definition
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Term
| Term: Any intangible offering that involves a deed, performance, or effort that cannot be physically touched |
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Definition
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|
Term
| Term: Human/mechanical activities firms undertake to help satisfy their customers needs and wants |
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Definition
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Term
| How are services different from products? |
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Definition
-Intangible
-Inseperable
-Variable
-Perishable |
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Term
| Term: The delivery of a service fails to meet expectations |
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Definition
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|
Term
| Term: What are the different types of service gaps? |
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Definition
-Knowledge gap
-Standards gap
-Delivery gap
-Communication gap |
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Term
| Term: Difference between customer's expectations and the firm's perception of these expectations |
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Definition
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Term
| Term: Difference between firm's perception of customers' expectations and the standards it sets |
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Definition
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|
Term
| Term: Difference between the firms' standards and the actual service |
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Definition
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Term
| Term: Difference between actual service provided and the promised service |
|
Definition
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Term
| Term: Customers' perceptions on how well a service meets/exceeds their expectations |
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Definition
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|
Term
| Term: Program that collects customers' inputs and integrates them into managerial decisions |
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Definition
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Term
| Term: Difference between customers' desired service and the minimum level of acceptable service |
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Definition
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Term
| Term: Allowing employees to make decisions about how service gets provided to customers |
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Definition
|
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Term
| What are the three steps to service recovery? |
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Definition
1. Listen to the customer
2. Find a fair solution
3. Resolve problem quickly |
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Term
| Term: Customer's perception of the benefits received compared with the costs |
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Definition
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|
Term
| Term: Perceived fairness of the process used to resolve complaints |
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Definition
|
|
Term
| What are the five service quality dimensions? |
|
Definition
-Reliability
-Responsiveness
-Empathy
-Assurance
-Tangibles |
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