Premium Pricing Strategy

Market segment values high quality & associates with pricing

Promotional or "Loss Leader" Pricing Strategy

Pricing attracts customers, but you do not make money/profit

Higher pricing, because your costs are lower.

Penetration pricing strategies

Enter market at low price, attract buyers from competitors

Being a discount retailer is difficult because

You need lower costs or be more efficient than competition

WalMart can sell 1-gallon jars of pickles for $3 because

We will probably buy other products too when we check-out

Premium pricing strategies

Price higher than competitors -- image of higher quality

Economy pricing strategies

Prices are always kept low, attract customers seeking value

Psychological pricing is

Create value in perception -- $99 instead of $100

Penetration Marketing Strategy

Loyalty-building or market entry tool. Enter new market

Competition-Based Pricing Strategy

Focus on what competitors charge -- meet or beat their price

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Pricing Strategies

17 termsStudBud Administration243 plays

While the model of supply and demand can help us price products and services, it is not enough. We never actually know the precise mathematical equation for supply and demand curves. Let's look at how businesses use pricing strategies #pricing #strategies

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
Premium Pricing Strategy
Market segment values high quality & associates with pricing
Pricing attracts customers, but you do not make money/profit
Focus on what competitors charge -- meet or beat their price
Loyalty-building or market entry tool. Enter new market
2
People always know the different prices that are available to choose from
True
False
3
Pricing strategies have a major impact on the marketing effectiveness for companies.
True
False
4
Promotional or "Loss Leader" Pricing Strategy
Pricing attracts customers, but you do not make money/profit
Focus on what competitors charge -- meet or beat their price
Loyalty-building or market entry tool. Enter new market
Market segment values high quality & associates with pricing
5
The marketing mix, or the 4 Ps of marketing, include: Product, Price, Place, and Promotion
True
False
6
Price skimming
Enter market at low price, attract buyers from competitors
Higher pricing, because your costs are lower.
Price higher than competitors -- image of higher quality
Prices are always kept low, attract customers seeking value
7
People can always judge a product/service's quality by its price
True
False
8
Penetration pricing strategies
Prices are always kept low, attract customers seeking value
Enter market at low price, attract buyers from competitors
Higher pricing, because your costs are lower.
Price higher than competitors -- image of higher quality
9
Being a discount retailer is difficult because
Calculating sale prices is difficult and takes time
There is so much cheap junk you could buy
There is not much cheap stuff you can buy to resell
You need lower costs or be more efficient than competition
10
WalMart can sell 1-gallon jars of pickles for $3 because
We will probably buy other products too when we check-out
Their cost is way below this
They are a nonprofit and do not need to make money
They function as a charity
11
Premium pricing strategies
Higher pricing, because your costs are lower.
Prices are always kept low, attract customers seeking value
Enter market at low price, attract buyers from competitors
Price higher than competitors -- image of higher quality
12
Economy pricing strategies
Higher pricing, because your costs are lower.
Price higher than competitors -- image of higher quality
Enter market at low price, attract buyers from competitors
Prices are always kept low, attract customers seeking value
13
Psychological pricing is
Rounding gas price up from 1/10th of a penny to whole penny
Effective for psychology services
Not effective, not used
Create value in perception -- $99 instead of $100
14
Penetration Marketing Strategy
Pricing attracts customers, but you do not make money/profit
Loyalty-building or market entry tool. Enter new market
Market segment values high quality & associates with pricing
Focus on what competitors charge -- meet or beat their price
15
Sometimes prices are higher because of a better product with higher selling costs
True
False
16
Sometimes prices are higher but the products are the same and have same costs
False
True
17
Competition-Based Pricing Strategy
Focus on what competitors charge -- meet or beat their price
Loyalty-building or market entry tool. Enter new market
Pricing attracts customers, but you do not make money/profit
Market segment values high quality & associates with pricing

Pricing Strategies Flashcards | StudBud

Pricing Strategies

17 termsStudBud Administration243 plays

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
Premium Pricing Strategy
Market segment values high quality & associates with pricing
Pricing attracts customers, but you do not make money/profit
Focus on what competitors charge -- meet or beat their price
Loyalty-building or market entry tool. Enter new market
2
People always know the different prices that are available to choose from
True
False
3
Pricing strategies have a major impact on the marketing effectiveness for companies.
True
False
4
Promotional or "Loss Leader" Pricing Strategy
Pricing attracts customers, but you do not make money/profit
Focus on what competitors charge -- meet or beat their price
Loyalty-building or market entry tool. Enter new market
Market segment values high quality & associates with pricing
5
The marketing mix, or the 4 Ps of marketing, include: Product, Price, Place, and Promotion
True
False
6
Price skimming
Enter market at low price, attract buyers from competitors
Higher pricing, because your costs are lower.
Price higher than competitors -- image of higher quality
Prices are always kept low, attract customers seeking value
7
People can always judge a product/service's quality by its price
True
False
8
Penetration pricing strategies
Prices are always kept low, attract customers seeking value
Enter market at low price, attract buyers from competitors
Higher pricing, because your costs are lower.
Price higher than competitors -- image of higher quality
9
Being a discount retailer is difficult because
Calculating sale prices is difficult and takes time
There is so much cheap junk you could buy
There is not much cheap stuff you can buy to resell
You need lower costs or be more efficient than competition
10
WalMart can sell 1-gallon jars of pickles for $3 because
We will probably buy other products too when we check-out
Their cost is way below this
They are a nonprofit and do not need to make money
They function as a charity
11
Premium pricing strategies
Higher pricing, because your costs are lower.
Prices are always kept low, attract customers seeking value
Enter market at low price, attract buyers from competitors
Price higher than competitors -- image of higher quality
12
Economy pricing strategies
Higher pricing, because your costs are lower.
Price higher than competitors -- image of higher quality
Enter market at low price, attract buyers from competitors
Prices are always kept low, attract customers seeking value
13
Psychological pricing is
Rounding gas price up from 1/10th of a penny to whole penny
Effective for psychology services
Not effective, not used
Create value in perception -- $99 instead of $100
14
Penetration Marketing Strategy
Pricing attracts customers, but you do not make money/profit
Loyalty-building or market entry tool. Enter new market
Market segment values high quality & associates with pricing
Focus on what competitors charge -- meet or beat their price
15
Sometimes prices are higher because of a better product with higher selling costs
True
False
16
Sometimes prices are higher but the products are the same and have same costs
False
True
17
Competition-Based Pricing Strategy
Focus on what competitors charge -- meet or beat their price
Loyalty-building or market entry tool. Enter new market
Pricing attracts customers, but you do not make money/profit
Market segment values high quality & associates with pricing