Final Marketing 360 exam chapter 21 & 3

price strategy
a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
price skimming
a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
penetration pricing
a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
status quo pricing
charging a price identical to or very close to the competition’s price
unfair trade practice acts
laws that prohibit wholesalers and retailers from selling below cost
price fixing
an agreement between two or more firms on the price they will charge for a product
predatory pricing
the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
base price
the general price level at which the company expects to sell the good or service
quantity discount
a price reduction offered to buyers buying in multiple units or above a specified dollar amount
cumulative quantity discount
a deduction from list price that applies to the buyer’s total purchases made during a specific period
noncumulative quantity discount
a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
cash discount
a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
functional discount (trade discount)
a discount to wholesalers and retailers for performing channel functions
seasonal discount
a price reduction for buying merchandise out of season
promotional allowance (trade allowance)
a payment to a dealer for promoting the manufacturer’s products
rebate
A cash refund given for the purchase of a product during a specific period
value-based pricing
setting the price at a level that seems to the customer to be a good price compared to the prices of other options
FOB origin pricing
a price tactic that requires the buyer to absorb the freight costs from the shipping point (“free on board”)
uniform delivered pricing
a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
zone pricing
a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone
freight absorption pricing
a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
basing-point pricing
a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
single-price tactic
a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
flexible pricing (variable pricing)
a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
price lining
the practice of offering a product line with several items at specific price points
odd-even pricing
a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
price bundling
marketing two or more products in a single package for a special price
unbundling
reducing the bundle of services that comes with the basic product
two-part pricing
a price tactic that charges two separate amounts to consume a single good or service
consumer penalty
an extra fee paid by the consumer for violating the terms of the purchase agreement
product line pricing
setting prices for an entire line of products
joint costs
costs that are shared in the manufacturing and marketing of several products in a product line
delayed-quotation pricing
a price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or delivered
escalator pricing
a price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made
price shading
the use of discounts by salespeople to increase demand for one or more products in a line
ethics
A system of moral principles.
deontological theory
ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma
utilitarian ethical theory
ethical theory that is founded on the ability to predict the consequences of an action
casuist ethical theory
ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and outcomes
moral relativism
an ethical theory of time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them
virtue
a character trait valued as being good
code of ethics
a guideline to help marketing managers and other employees make better decisions
foreign corrupt practices act
a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries
corporate social responsibility
business’s concern for society’s welfare
stakeholder theory
ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation
pyramid of corporate social responsibility
a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities, and that the firm’s economic performance supports the entire structure.
sustainability
the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time
green marketing
the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
cause-related marketing
the cooperative marketing efforts between a for-profit firm and a nonprofit organization
bait pricing
a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
leader pricing
a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
morals
the rules people develop as a result of cultural values and norms