Setting Prices Strategies in Marketing

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12 Questions

What is the main difference between cost-plus pricing and markup pricing?

Cost-plus pricing adds a predetermined percentage to the cost, while markup pricing adds a specified amount to the cost.

Which pricing strategy involves charging different prices to different buyers for the same product?

Differential pricing

What is the purpose of differential pricing?

To charge different prices for the same product

In which pricing strategy does a firm reduce prices temporarily on a non-systematic basis?

Random Discounting

What is the key characteristic of psychological pricing?

It aims to influence customer perception of price

Which type of pricing involves setting predetermined prices that reflect explicit price breaks?

Price Lining

What is one of the major pricing objectives mentioned in the text?

Survival

In the process of setting prices, what is Stage 3 about?

Evaluation of competitor's prices

Which pricing objective aims to maintain or increase market share?

Market share

For cost-based pricing, what is added to the cost of the product?

A flat peso amount or percentage

Which pricing objective focuses on recovering cash as quickly as possible?

Cash Flow

What does a high price signal to customers according to the text?

High quality product

Learn about the development of pricing objectives and strategies in marketing, including assessment of target market's evaluation of price, evaluation of competitors' prices, basis for pricing selection, and pricing strategy selection.

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