Chapter 14 Marketing (kerin)

Skimming Pricing
setting the highest initial price that customers really desiring the product are willing to pay
Penetration Pricing
Setting a low initial price on a new product
Prestige Pricing
involves setting a high price so that quality or status- conscious consumers will be attracted to the product and buy it
Price Lining
setting the price of a line of products at a number of different specific pricing points
One-Price Policy
setting one price for all buyers if a product or service
Flexible-Price Policy
setting different prices for products and services depending on individual buyers and purchase situations
Dynamic Pricing
the practicing of changing prices for products and services in real time in response to supply and demand conditions
Quantity Discounts
reductions in unit cost for a larger order
Seasonal Discounts
encourage buyers to buy something earlier than demand
Trade (Functional) Discounts
to reward wholesalers and retailers for marketing functions they will perform in the future
Cash Discounts
to encourage retailers to pay their bills quickly
FOB Origin Pricing
price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur
Target Profit Pricing
an annual target of a specific dollar volume of profit
Target Return On Investment Pricing
is a method if setting prices to achieve this target
Customary Pricing
a standardized channel of distribution, or other competitive factors dictate price
Leader Pricing
increase sales but to attract customers in hope they would buy other products as well