Untitled Quiz

A pricing goal in which a company aims to increase its share of the market, often overlooking profit.

A measure of profitability, calculated by dividing net profit by total investment.

A pricing goal prioritizing increased sales volume, often regardless of profit or market competition.

A short-term pricing objective for maximizing cash flow, often in times of financial distress or uncertainty.

A pricing strategy that maintains existing prices or meets competitor prices, minimizing planning and risk.

Specific targets for product pricing that fall into categories such as profit-oriented, sales-oriented, and status quo objectives.

A four-step approach to setting the appropriate product price, beginning with establishing pricing goals.

Aggressive price competition between companies in the same industry, often to attract more customers.

A pricing strategy where a company initially charges a high price for a new product, often alongside strong promotion, and then gradually lowers the price over time (sliding down the demand curve).

A competitive pricing approach in a particular market segment, aligning with a company's positioning strategy

A company's flexibility in setting a price for a new product, influenced by market conditions and other marketing mix elements.

A situation where a company's new product closely resembles existing ones on the market

A change in product pricing from a premium level to a super-premium level, requiring adjustments in product features, target market, promotion or distribution channels.

Market conditions, along with the rest of the marketing strategy, dictate a company's ability to establish prices for its products.

A company with a truly innovative, unique product with no close substitutes has greater pricing freedom.

Companies often choose from price skimming, penetration pricing, or a status quo pricing approach when setting prices.

A lower price for buying multiple units or exceeding a certain dollar amount.

Price reduction based on total purchases over a period, encouraging loyalty.

Price reduction for a single order, encouraging large orders.

Price reduction for prompt payment, saving seller costs.

Discount for distribution channel intermediaries (like wholesalers) for services provided.

Price reduction for buying out-of-season merchandise, shifting storage to buyer.

Discount based on a random result, like a scratch-off card.

Can create expectations of lower prices, impacting profitability negatively.

Decreasing average costs per unit as production volume increases.

Increasing average costs per unit as production volume increases.

Long run average cost curve; shows the lowest average cost for different production levels.

Decreasing average costs as production increases due to learning and efficiency gains.

Another name for the experience curve.

Choosing the optimal plant size based on predicted demand and costs.

A company's portion of the total market for its products.

Increased sales result in faster cost reductions as companies gain more production experience.

A type of auction where bidders submit sealed bids, and the highest bid wins.

A method where the highest bidder pays the amount of their bid.

Pricing procedures that involve competition for purchasing or selling.

The predicted return from a specific bid, considering the probability of winning.

Auctions conducted online, facilitated by the global reach and simultaneity of the internet.

Business-to-business auctions, a dominant online auction form currently.

The bid that maximizes expected profit, balancing the chance of winning with the profit from winning.

The unknown price received by sellers and the lack of purchase guarantee for buyers in auctions.

A pricing strategy where a new product is initially priced high and then gradually lowered.

High prices might lead loyal customers to seek alternatives, like attending minor league games instead of major league.

Raising prices, waiting for reactions from competitors; if they don't follow, then reduce it back to initial level.

High prices for newly developed products, like pharmaceuticals, might offset the high research and development costs.

Maintaining high prices throughout a product's lifecycle is not always successful. Pricing might need adjustments with demand changes.

If a company has cut prices in the past, consumers expect it.

High initial demand for a new product can create problems if production capacity can't keep up. Retailers will lose customer trust.

Competitors might not always follow a price increase by another firm. The leading firm might have to adjust its price back to the original level.