Podcast
Questions and Answers
What is the main difference between cost-plus pricing and markup pricing?
What is the main difference between cost-plus pricing and markup pricing?
- Cost-plus pricing is a strategy based on competition, while markup pricing is a differential pricing strategy.
- Cost-plus pricing adjusts the price based on demand, while markup pricing sets the price according to the seller’s costs.
- Cost-plus pricing adds a predetermined percentage to the cost, while markup pricing adds a specified amount to the cost. (correct)
- Cost-plus pricing is commonly used by retailers, while markup pricing is used by sellers to set prices based on demand.
Which pricing strategy involves charging different prices to different buyers for the same product?
Which pricing strategy involves charging different prices to different buyers for the same product?
- Markup pricing
- Differential pricing (correct)
- Competition-based pricing
- Demand-based pricing
What is the purpose of differential pricing?
What is the purpose of differential pricing?
- To charge the same price to all buyers
- To establish prices based on demand
- To charge different prices for the same product (correct)
- To set prices below competitors' prices
In which pricing strategy does a firm reduce prices temporarily on a non-systematic basis?
In which pricing strategy does a firm reduce prices temporarily on a non-systematic basis?
What is the key characteristic of psychological pricing?
What is the key characteristic of psychological pricing?
Which type of pricing involves setting predetermined prices that reflect explicit price breaks?
Which type of pricing involves setting predetermined prices that reflect explicit price breaks?
What is one of the major pricing objectives mentioned in the text?
What is one of the major pricing objectives mentioned in the text?
In the process of setting prices, what is Stage 3 about?
In the process of setting prices, what is Stage 3 about?
Which pricing objective aims to maintain or increase market share?
Which pricing objective aims to maintain or increase market share?
For cost-based pricing, what is added to the cost of the product?
For cost-based pricing, what is added to the cost of the product?
Which pricing objective focuses on recovering cash as quickly as possible?
Which pricing objective focuses on recovering cash as quickly as possible?
What does a high price signal to customers according to the text?
What does a high price signal to customers according to the text?
Flashcards
Cost-plus pricing
Cost-plus pricing
Adding a predetermined percentage to the product's cost.
Markup pricing
Markup pricing
Adding a specific amount to the product's cost.
Differential pricing
Differential pricing
Charging different prices for the same product to different buyers.
Purpose of differential pricing
Purpose of differential pricing
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Random Discounting
Random Discounting
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Psychological pricing
Psychological pricing
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Price Lining
Price Lining
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Survival (pricing objective)
Survival (pricing objective)
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Stage 3 of setting prices
Stage 3 of setting prices
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Market Share (pricing objective)
Market Share (pricing objective)
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Cost-based pricing
Cost-based pricing
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Cash Flow (pricing objective)
Cash Flow (pricing objective)
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