Pricing Strategies Overview

<p>Loss-Leader Pricing (B)</p> Signup and view all the answers

<p>Consumer Value (D)</p> Signup and view all the answers

<p>Quantity Discount (B)</p> Signup and view all the answers

<p>From $86.00 to $69.99 (D)</p> Signup and view all the answers

<p>Customary Pricing (C)</p> Signup and view all the answers

<p>25% off, then 25% off the reduced price (D)</p> Signup and view all the answers

<p>Collusion between companies to set prices (D)</p> Signup and view all the answers

<p>Value Pricing (D)</p> Signup and view all the answers

<p>Price Discrimination (D)</p> Signup and view all the answers

<p>Buy one, get 50% off the second (A)</p> Signup and view all the answers

<p>Dynamic Pricing Policy (B)</p> Signup and view all the answers

<p>Setting prices based on consumer perception of worth (C)</p> Signup and view all the answers

<p>To attract customers with low prices temporarily (C)</p> Signup and view all the answers

<p>Dynamic pricing based on demand (A)</p> Signup and view all the answers

<p>Higher prices always equate to better quality (D)</p> Signup and view all the answers

<p>Profit = Total Revenue - Total Cost (C)</p> Signup and view all the answers

<p>Managing for Long-Run Profits (B)</p> Signup and view all the answers

<p>Cost of Production and Marketing (C)</p> Signup and view all the answers

<p>Monopoly (D)</p> Signup and view all the answers

<p>Cost incurred by producing one additional unit (A)</p> Signup and view all the answers

<p>Competition-oriented Approaches (B)</p> Signup and view all the answers

<p>Skimming Pricing (D)</p> Signup and view all the answers

<p>Production Costs (B)</p> Signup and view all the answers

<p>Bundle Pricing (A)</p> Signup and view all the answers

<p>Selling Price multiplied by Quantity Sold (B)</p> Signup and view all the answers

<p>Prices ending in odd numbers create a perception of a lower price (D)</p> Signup and view all the answers

<p>Fixed Costs (A)</p> Signup and view all the answers

<p>Market Share (B)</p> Signup and view all the answers

<p>It encourages ethical considerations in pricing. (D)</p> Signup and view all the answers

The perceived value of a product or service in the eyes of the customer.

A pricing strategy where the price is set based on the perceived value of the product or service.

Decoding today's consumer prices involves understanding how different promotional strategies affect the perceived value of a product.

A common promotional tactic where customers receive one item free with the purchase of another.

Promotional deals that may involve a percentage off or a fixed price reduction.

To evaluate different discounts, consider the total dollar amount saved and the percentage off the original price. Not just the discounted price, but the total dollar amount saved.

The concept of comparing discounts to figure out which is the best deal for your money.

It's important to compare different discounts in terms of total dollars saved and percentage discounts to make informed decisions.

A pricing strategy that aims to achieve a predetermined profit level by setting a price that covers all costs and generates the desired profit.

A pricing strategy where the price is set based on the desired return on sales, considering the total revenue and total cost.

A pricing strategy that relies on what customers typically expect to pay for a certain product or service. It involves setting the price at or near the expected or established price point.

A pricing strategy that sets the price above, at, or below the average market price for a similar product or service. This strategy allows businesses to compete by differentiating their offerings.

A pricing strategy where a product or service is sold at a price below its cost to attract customers and encourage them to purchase other products.

A pricing strategy where the seller maintains a fixed price for a product or service without any adjustments based on market fluctuations or other factors.

A pricing strategy where the seller adjusts the price dynamically based on various factors like market demand, competition, time of day, or customer behavior. Often used in online marketplaces or by ride-sharing services.

A pricing strategy that offers discounts to buyers who purchase larger quantities of a product. This strategy typically aims to incentivize bulk purchases and increase sales volume.

A pricing strategy that allows customers to receive credit for their old products when purchasing new products. This strategy is often used for durable goods like cars or electronics.

An illegal practice where two or more competitors agree to set prices for products or services at a certain level. This violates antitrust laws and limits competition.

Total Revenue (TR) is the overall amount of money a company earns from selling its products or services. It's calculated by multiplying the price per unit by the number of units sold.

Average Revenue (AR) is the average revenue generated per unit sold. It's calculated by dividing Total Revenue (TR) by the quantity of units sold.

Marginal Revenue (MR) is the additional revenue earned from selling one more unit. It's the change in total revenue from selling one extra unit.

Total Cost (TC) is the overall cost of producing and selling goods or services. It includes both fixed costs and variable costs.

Fixed Cost (FC) remains constant regardless of the number of units produced or sold. Examples include rent, salaries, and insurance.

Variable cost (VC) fluctuates based on the number of units produced or sold. It includes costs like raw materials, labor directly related to production, and packaging.

Marginal cost (MC) is the additional cost of producing one additional unit. It is the change in total cost from producing one more unit.

Involves setting a high initial price to skim profits from early adopters. This is good for products perceived as premium or innovative.

Setting a low initial price to attract a large customer base quickly. This helps gain market share fast.

This involves pricing a product at a premium price to convey high quality or exclusivity. This works for luxury brands.

Selling a bundle of products together at a discounted price. This encourages more sales and is good for complementary products.

Using prices that end in odd numbers (e.g., $9.99) to create the perception of a lower price. It's based on psychology.

A strategy used in industries with fluctuating demand (like airlines or hotels) to optimize revenue. They offer different prices at different times to maximize profits.

Involves setting a price based on the cost of producing the product, plus a profit margin. It's a straightforward method.

A strategy used to manage costs in the long run. It focuses on profitability over time rather than immediate short-term profits.

A strategy that focuses on maximizing current profits. It prioritizes short-term profitability over long-term gains.