Marketing – Pricing Strategies Chapter 26 Vocabulary

Markup
generally expressed as a percentage is the difference between an items cost and sale price.
One – Price Policy
One in which customers pay different prices.
Flexible – Price Policy
one in which customers pay different prices for the same type or amount of merchandise.
Skimming Pricing
a pricing policy that sets a very high price for a new product.
Penetration Pricing
the price for a new product is set very low.
Product Mix Pricing Strategies
adjusting prices to maximize the profitablility for a group of products rather than for just one item.
Price Lining
pricing technique that sets a limited number of prices for specific groups or lines of merchandise.
Bundle Pricing
a company offers several complementary or corresponding products in a package that is sold at a single price.
Geographical Pricing
refers to price adjustments required because of different shipping agreements.
Segmented Pricing Strategy
uses two or more different prices for a product though there is no difference in cost.
Psychological Pricing
are pricing techniques that help create an illusion for customers.
Prestige Pricing
sets higher than average prices to suggest status and high quality to the consumer
Everyday Low Prices (EDLP)
low prices set on a consistent basis with no intention of raising them or offering discounts in the future
Promotional Pricing
generally used in conjunction with sales promotions wherein prices reduced for a short time
Allocated
distribute according to a plan or set apart for a special purpose.