SEM Pricing Strategies Vocab

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price

Back

the value placed on goods or services being exchanged

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prestige pricing

Back

pricing based on consumer perception

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odd-even pricing

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pricing goods with either an odd number or even number to match a product’s image

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What is target pricing? Options: an illegal practice whereby competitors conspire to set the same price, process that involves producing and marketing a new product, pricing goods according to what the customer is willing to pay

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pricing goods according to what the customer is willing to pay

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markup

Back

difference between the retail or wholesale price and the cost of an item

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cost-plus pricing

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pricing products by calculating all costs and expenses and adding desired profit

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non-price competition

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competition between businesses based on quality, service, and relationships

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market share

Back

the percentage of the total sales of all companies that sell the same type of product

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price lining

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selling all goods in a product line at specific price points

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bundle pricing

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selling several items as a package for a set price