Gizem Atav COB300D Exam 2 Vocab
Questions with Verified Answers |
Latest Update 100% Pass
cost-based pricing methods - CORRECT ANSWER-determine the final price to
charge by starting with the cost
competition-based pricing method - CORRECT ANSWER-set their prices to
reflect the way they want consumers to interpret their own prices, relative to
competitors' offerings
value-based pricing methods - CORRECT ANSWER-approaches to setting prices
that focus on the overall value of the product offering as perceived by the
consumer
improvement value - CORRECT ANSWER-represents an estimate of how much
more (or less) consumers are willing to pay for a product relative to other
comparable products
cost-of-ownership method - CORRECT ANSWER-consumers may be willing to
spend more initially if, over the lifetime, the product will eventually cost less to
own
,pricing strategy - CORRECT ANSWER-A long-term approach to setting prices
broadly in an integrative effort based on the five C's (company objectives, costs,
customers, competition, channel members)
everyday low pricing - CORRECT ANSWER-companies stress the continuity of
their retail prices at a level somewhere between the regular, nonsale price and the
deep-discount sale prices their competitors may offer
high-low pricing strategy - CORRECT ANSWER-relies on the promotion of sales,
during which prices are temporarily reduced to encourage purchases
penetration pricing - CORRECT ANSWER-setting a low initial price on a new
product to appeal immediately to the mass market
experience curve effect - CORRECT ANSWER-refers to the drop in unit cost as
the accumulated volume sold increases; as sales continue to grow, the costs
continue to drop, allowing even further reductions in the price
price skimming - CORRECT ANSWER-a pricing policy whereby a firm charges a
high introductory price, often coupled with heavy promotion, followed by a
gradual reduction of price to capture more price-sensitive segments
pricing tactics - CORRECT ANSWER-Short-term methods, in contrast to long-
term pricing strategies, used to focus on company objectives, costs, customers,
competition, or channel members; can be responses to competitive threats (e.g.,
lowering price temporarily to meet a competitor's price reduction) or broadly
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, accepted methods of calculating a final price for the customer that is short term in
nature. Support pricing strategies
markdowns - CORRECT ANSWER-reductions retailers take on the initial selling
price of the product or service; an integral component to high-lower pricing
strategy
seasonal discounts - CORRECT ANSWER-discounts that stimulate demand
during off-peak seasons
coupons - CORRECT ANSWER-offer a discount on the price of specific items
when they're purchased. Questionable impact profitability--may steal sales from a
future period or alienate customers because of confusing/annoying conditions
rebate - CORRECT ANSWER-a discount offered in the form of a partial refund
that is issued to the customer several weeks after the purchase. Effective because
90% of customers never redeem them, they are easy to roll out or shut off quickly,
and they create a database of customers
price bundling - CORRECT ANSWER-practice of selling more than one product
for a single, lower price
leader pricing - CORRECT ANSWER-a price tactic in which a product is sold
near or even below cost in the hope that shoppers will buy other items once they
are in the store
Questions with Verified Answers |
Latest Update 100% Pass
cost-based pricing methods - CORRECT ANSWER-determine the final price to
charge by starting with the cost
competition-based pricing method - CORRECT ANSWER-set their prices to
reflect the way they want consumers to interpret their own prices, relative to
competitors' offerings
value-based pricing methods - CORRECT ANSWER-approaches to setting prices
that focus on the overall value of the product offering as perceived by the
consumer
improvement value - CORRECT ANSWER-represents an estimate of how much
more (or less) consumers are willing to pay for a product relative to other
comparable products
cost-of-ownership method - CORRECT ANSWER-consumers may be willing to
spend more initially if, over the lifetime, the product will eventually cost less to
own
,pricing strategy - CORRECT ANSWER-A long-term approach to setting prices
broadly in an integrative effort based on the five C's (company objectives, costs,
customers, competition, channel members)
everyday low pricing - CORRECT ANSWER-companies stress the continuity of
their retail prices at a level somewhere between the regular, nonsale price and the
deep-discount sale prices their competitors may offer
high-low pricing strategy - CORRECT ANSWER-relies on the promotion of sales,
during which prices are temporarily reduced to encourage purchases
penetration pricing - CORRECT ANSWER-setting a low initial price on a new
product to appeal immediately to the mass market
experience curve effect - CORRECT ANSWER-refers to the drop in unit cost as
the accumulated volume sold increases; as sales continue to grow, the costs
continue to drop, allowing even further reductions in the price
price skimming - CORRECT ANSWER-a pricing policy whereby a firm charges a
high introductory price, often coupled with heavy promotion, followed by a
gradual reduction of price to capture more price-sensitive segments
pricing tactics - CORRECT ANSWER-Short-term methods, in contrast to long-
term pricing strategies, used to focus on company objectives, costs, customers,
competition, or channel members; can be responses to competitive threats (e.g.,
lowering price temporarily to meet a competitor's price reduction) or broadly
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
, accepted methods of calculating a final price for the customer that is short term in
nature. Support pricing strategies
markdowns - CORRECT ANSWER-reductions retailers take on the initial selling
price of the product or service; an integral component to high-lower pricing
strategy
seasonal discounts - CORRECT ANSWER-discounts that stimulate demand
during off-peak seasons
coupons - CORRECT ANSWER-offer a discount on the price of specific items
when they're purchased. Questionable impact profitability--may steal sales from a
future period or alienate customers because of confusing/annoying conditions
rebate - CORRECT ANSWER-a discount offered in the form of a partial refund
that is issued to the customer several weeks after the purchase. Effective because
90% of customers never redeem them, they are easy to roll out or shut off quickly,
and they create a database of customers
price bundling - CORRECT ANSWER-practice of selling more than one product
for a single, lower price
leader pricing - CORRECT ANSWER-a price tactic in which a product is sold
near or even below cost in the hope that shoppers will buy other items once they
are in the store
