5.1 AMA PCM Pricing Concepts & Methods
Terms in this set (65)
Setting a market price for a product or product class based on a subje
Above-, At- Below-Market Pricing
feel for the competitors' price or market as the benchmark.
A product is promised at a low price but is either not in stock or a less
Bait Pricing (or Bait and Switch)
attractive product is sold.
A form of trade in which people exchange goods and services without
Barter
use of money.
The point at which the money from product sales equals the costs of
Break-Even Point
making and distributing the product.
Bundle Pricing Selling distinct multiple items offered together at a special price.
Pricing the basic product in a product line low, while pricing related ite
Captive Pricing
higher
Competition-Based Pricing A pricing strategy based on what all the other competitors are doing.
Competition-Oriented Pricing A pricing strategy that is based upon what the competition does.
Approach
, 5.1 AMA PCM Pricing Concepts & Methods
Pricing approaches in which a price-setter stresses the cost side of the
pricing problem, not the demand side. Price is set by looking at the
Cost-Oriented Pricing Approach
production and marketing costs and then adding enough to cover dire
expenses, overhead, and profit.
A graph illustrating how much of a given product a household would b
Demand Curve
willing to buy at different prices.
Summing the total unit cost of providing a product or service and addi
Cost-Plus Pricing
specific amount to the cost to arrive at a price
Discounts Temporary price reductions, often employed to boost sales.
long-term pricing strategy, designed to achieve profitability through hi
Everyday Low Pricing
sales volume.
A method of pricing based on the learning effect, which holds that the
cost of many products and services declines by 10 percent to 30 perce
Experience Curve Pricing
each time a firm's experience at producing and selling them doubles,
resulting in possible rapid price reductions.
A price presented by a marketer for the consumer to use to compare w
External Reference Price
the current price.
Terms in this set (65)
Setting a market price for a product or product class based on a subje
Above-, At- Below-Market Pricing
feel for the competitors' price or market as the benchmark.
A product is promised at a low price but is either not in stock or a less
Bait Pricing (or Bait and Switch)
attractive product is sold.
A form of trade in which people exchange goods and services without
Barter
use of money.
The point at which the money from product sales equals the costs of
Break-Even Point
making and distributing the product.
Bundle Pricing Selling distinct multiple items offered together at a special price.
Pricing the basic product in a product line low, while pricing related ite
Captive Pricing
higher
Competition-Based Pricing A pricing strategy based on what all the other competitors are doing.
Competition-Oriented Pricing A pricing strategy that is based upon what the competition does.
Approach
, 5.1 AMA PCM Pricing Concepts & Methods
Pricing approaches in which a price-setter stresses the cost side of the
pricing problem, not the demand side. Price is set by looking at the
Cost-Oriented Pricing Approach
production and marketing costs and then adding enough to cover dire
expenses, overhead, and profit.
A graph illustrating how much of a given product a household would b
Demand Curve
willing to buy at different prices.
Summing the total unit cost of providing a product or service and addi
Cost-Plus Pricing
specific amount to the cost to arrive at a price
Discounts Temporary price reductions, often employed to boost sales.
long-term pricing strategy, designed to achieve profitability through hi
Everyday Low Pricing
sales volume.
A method of pricing based on the learning effect, which holds that the
cost of many products and services declines by 10 percent to 30 perce
Experience Curve Pricing
each time a firm's experience at producing and selling them doubles,
resulting in possible rapid price reductions.
A price presented by a marketer for the consumer to use to compare w
External Reference Price
the current price.
