Marketing Management Study Guide EOPA (Pricing)

Front

Marketers study the psychological significance of pricing because the price

Back

Leads to value and quality perceptions to a customer

Front

Select the technique and example used in pricing products. Technique: Setting prices that end in either odd numbers to send a message of value or ending in positive numbers to send the message of high quality. Example: $19.99 – Value, $20 – High Quality

Back

Odd-Even Pricing

Front

Select the technique and example used in pricing products. Technique: Setting higher than average prices to send a message to customers that the product has a status and is prestigious. Example: Sneakers of a particular brand that cost $180

Back

Prestige Pricing

Front

Select the technique and example used in pricing products. Technique: Pricing multiple products together rather than by themselves to send a message of value and increase sales volume. Example: 3 cookies for $1

Back

Multiple Unit Pricing

Front

Select the technique and example used in pricing products.

Technique:
Pricing several complementary products together for one price.

Example:
Pricing a video game console, accessories and 2 games all together for $160.

Back

Bundle Pricing

Front

Select the technique and example used in pricing products.

Technique:
Pricing products lower than average in order to stimulate sales or just to get customers to come in and purchase not just the lower priced items, but other items as well.

Example:
Pricing a gallon of milk for $1 when normally it sells for $2.50

Back

Promotional Pricing

Front

Select the technique and example used in pricing products.

Technique:
Charging a low price everyday without ever planning on discounting it in the future to provide consistent sales of that item over a period of time.

Example:
Charging the same price for eggs on a consistent basis. The eggs never go on sale nor are they ever discounted.

Back

Everyday Low Price (EDLP)

Front

Select the technique and example used in pricing products.

Technique:
Pricing products in a given category at a particular price.
Pricing

Example:
Pricing all pants at $25, $45, and $65.

Back

Pricing Lining

Front

What is the function of marketing that studies customer demand and product features in order to place a value of money on a product?

Back

Price

Front

Pricing helps determine __________.

Back

Profits