Intro to Entrepreneurship ch 12

Price gouging is legally acceptable in most states.

Netflix practiced price skimming when it first launched to compete with Blockbuster.

Occurs when competitors agree to maintain prices at a certain level.

Pricing strategy where products are artificially marked up higher then offered for sale for what seems to be lower cost

The act of lowering the prices temporarily to raise awareness.

Rolex practices a prestige pricing strategy.

A pricing strategy where a company sets a very low initial price in order to attract customers and raise awareness.

A pricing strategy where a company sets a very high initial price and then lowers it over time.

A marketing strategy based on the theory that prices will impact consumer perceptions.

Indicating cost based on a standard unit of measurement such as pound, ounce or piece.

Pricing strategy where products are artificially marked up higher then offered for sale for what seems to be lower costs

A pricing strategy where retail prices are set as odd prices, a little less than an even price.

A pricing strategy where prices are set high to give the perception of high quality.

The practice of raising prices on goods or services to an unreasonable or unfair level.

The selling price = cost + ______________.