Term
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Definition
| setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes few but more profitable sales |
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| market-penetration pricing |
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Definition
| setting a low price for a new product in order to attract a large number of buyers and a large market share |
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Term
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Definition
| setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices |
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Term
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Definition
| the pricing of optional or accessory products along with a main product |
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Term
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Definition
| setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera |
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Term
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Definition
| setting a price for by-products in order to make the main product's price more competitive |
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Term
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Definition
| combining several products and offering the bundle at a reduced price |
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Term
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Definition
| a straight reduction in price on purchases during a stated period of time |
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Term
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Definition
| promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way |
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Term
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Definition
| selling a product or service at two or more prices, where the difference in prices is not based on differences in costs |
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Term
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Definition
| a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product |
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Term
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Definition
| prices that buyers carry in their minds and refer to when they look at a given product |
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Term
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Definition
| temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales |
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Term
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Definition
| setting prices for customers located in different parts of the country or world |
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Term
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Definition
| a geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination |
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Term
| uniform-delivering pricing |
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Definition
| a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location |
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Term
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Definition
| a geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price |
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Term
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Definition
| a geographical pricing strategy in which the seller designates some city as a basing point and charges all customer the freight cost from that city to the customer |
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Term
| freight-absorption pricing |
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Definition
| a geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business |
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Term
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Definition
| adjusting prices continually to meet the characteristics and needs of individual customers and situations |
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