Pricing in Economics and Finance

Odd Pricing is when the price of a product is an ______ number.

Rs.399.95 Ps sounds better than Rs.400 due to the impression that the price is ______.

Psychological Pricing is when the price of a product is a ______ number.

Marketers who do not believe in odd pricing prefer psychological pricing with ______ numbers.

Petrol dealers follow a uniform price policy in an ______ market.

Prestige or premium pricing - This method is followed by those who deal in luxury goods. Such marketers keep the price of goods high for they think that customers will judge quality by the price. Example - Those who sell cosmetic items, leather goods, electronic items, etc., follow ______ pricing.

FOB (Free on Board) Pricing - Such a pricing has relevance when goods are to be transported to the buyer's place. In case of FOB origin, the buyer will bear the transit charges himself and, in the case, if FOB destination, he need not pay the transit charges. CIF (Cost, Insurance and Freight) Price - In the case of CIF price quotation, the price paid by the buyer (may be an importer) is inclusive of cost, insurance and ______ charges.

Dual Pricing - It refers to the practice of some marketers who quote two different prices for the same product, one may be for bulk buyers and one for small quantity buyers. Administered Pricing - The price determined by a marketer based mainly on personal considerations is known as ______ pricing.

Monopoly Pricing - The price fixed by a marketer who has no competition in the market. Price Lining - The price, once determined, remains unchanged for a fairly longer period of time. Expected Pricing - The price fixed for a product based on the expectations of the consumers is known as ______ pricing.

Negotiated Pricing - Manufacturers of industrial goods, who need components from suppliers, negotiate with the latter before finalizing the price. This becomes necessary in view of the high cost of the components. Mark-up Pricing - It refers to the price arrived at by a retailer by adding a certain percentage (towards his margin of profit) to the manufacturer's price. It is only at this price that he sells the goods to the consumers. Skimming Pricing - It refers to the practice of setting a very high price for a product when it is introduced into the market for the first time and to reduce the same gradually as competitors enter the ______.