Term
| Non monetary aspects of price |
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Definition
Opportunity Cost
Time and Effort cost
Psychic Cost |
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Term
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Definition
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Term
| Types of Profit Pricing Objectives |
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Definition
Profit maximization
satisfactory profits
Target return |
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Term
| Types of Sales Pricing Objectives |
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Definition
Sales Maximization
Market Share |
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Term
| Types of Other Pricing Objectives |
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Definition
Competition Oriented
Customer oriented
survival
social responsibility
to stabilize prices |
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Term
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Definition
Price where "all the market will bear"
MC=MR
unrelated to costs of production |
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Term
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Definition
often requires short term profit sacrifice
Target Sales? Market Share? Unit Volume? |
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Term
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Definition
| High prices to establish premium image and perception of higher value |
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Term
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Definition
1. Company Objectives
2. Customers (Demand of Customers)
3. Costs
4. Competition
5. Channel Members |
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Term
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Definition
1. Establish Pricing Goals
2. Estimate Demands, costs,and profits
3. choose a pricing strategy
4. fine tune with pricing tactics |
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Term
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Definition
| assumes a profit maximization strategy |
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Term
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Definition
1. Allocate Costs
2. Add profit Margin |
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Term
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Definition
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Term
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Definition
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Term
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Definition
Introduce at high price to segment w/ inelastic demand
lower price while working through increasingly elastic segments
best w/ little competition or barriers to entry
downward sloping demand curve
ex. Ipads |
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Term
| Price Skimming is best when |
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Definition
1. inelastic demand
2. unique advantage/superior product
3. legal protection of product
4. technological breakthrough
5. blocked entry to competitors |
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Term
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Definition
sets low prices to introduce trial and attract customers
raises price over time
used in growth and maturity stage |
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Term
| Advantages of penetration pricing |
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Definition
discourages competition
boosts sales/large profit increases
can justify production expansion |
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Term
| Disadvantages of penetration pricing |
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Definition
requires gear up for expansion
large volumes at low prices
strategy to gain market share may fail |
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Term
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Definition
aka psychological pricing
using $?.99 |
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Term
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Definition
| using higher prices to perceive higher value |
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Term
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Definition
| displaying prices for an entire line of products with increasing prices |
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Term
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Definition
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Term
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Definition
| selling at a loss to encourage sales |
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