Marketing Management Study Guide EOPA (Pricing)

Marketers study the psychological significance of pricing because the price

• Leads to value and quality perceptions to a customer

• Helps suppliers know how much to charge a business for purchasing their product

• Gives managers an opportunity to learn things about customers

• Offers customers the ability to purchase a product

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

• Odd-Even Pricing

• Prestige Pricing

• Multiple Unit Pricing

• Bundle Pricing

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

• Odd-Even Pricing

• Prestige Pricing

• Multiple Unit Pricing

• Bundle Pricing

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

• Odd-Even Pricing

• Prestige Pricing

• Multiple Unit Pricing

• Bundle Pricing

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.

• Odd-Even Pricing

• Prestige Pricing

• Multiple Unit Pricing

• Bundle Pricing

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

• Promotional Pricing

• Everyday Low Price (EDLP)

• Pricing Lining

• Bundle Pricing

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.

• Promotional Pricing

• Everyday Low Price (EDLP)

• Pricing Lining

• Bundle Pricing

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.

• Promotional Pricing

• Everyday Low Price (EDLP)

• Pricing Lining

• Bundle Pricing

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

• Finance

• Price

• Product/Service Management

• Selling

Pricing helps determine __________.

• Profits

• Advertising

• Value & image

• Product & management