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BUS 2600 Final Exam Study Questions Solved 100% Correct
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BUS 2600 Final Exam Study Questions Solved 100% Correct
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BUS 2600 Final Exam Study Questions Solved100% Correct
price elasticity - ✔✔A measure of the sensitivity of demand to changes in price.
market-skimming pricing (price skimming) - ✔✔Setting a high price for a new product
to skim maximum revenues layer by layer from the segments willing to pay the high
price; the company makes fewer but more profitable sales
market-penetration pricing - ✔✔Setting a low price for a new product in order to
attract a large number of buyers and a large market share.
product line pricing - ✔✔Setting the price steps between various products in a
product line based on cost differences between the products, customer evaluations of
different features, and competitors' prices
optional product pricing - ✔✔pricing optional or accessory products along with the
main product
captive-product pricing - ✔✔Setting a price for products that must be used along
with a main product, such as blades for a razor and games for a videogame console. In
the case of services, captive-product pricing is called two-part pricing. The price of the
service is broken into a fixed fee plus a variable usage rate. Thus, at Six Flags and other
amusement parks, you pay a daily ticket or season pass charge plus additional fees for
food and other in-park features
by-product pricing - ✔✔Setting a price for by-products to help offset the costs of
disposing of them and help make the main product's price more competitive.
,product bundle pricing - ✔✔Combining several products and offering the bundle at a
reduced price. Price bundling can promote the sales of products consumers might not
otherwise buy (Microsoft OneNote in Microsoft Office), but the combined price must be
low enough to get them to buy the bundle.
discount - ✔✔A straight reduction in price on purchases during a stated period of
time or of larger quantities.
allowance - ✔✔Promotional money paid by manufacturers to retailers in return for
an agreement to feature the manufacturer's products in some way. ex: trade-in
allowances and promotional allowances
segmented pricing - ✔✔Selling a product or service at two or more prices, where the
difference in prices is not based on differences in costs. customer-segment pricing,
product form pricing, location-based pricing, time-based pricing (p 312)
psychological pricing - ✔✔pricing that considers the psychology of prices and not
simply the economics; the price is used to say something about the product
reference prices - ✔✔prices that buyers carry in their minds and refer to when they
look at a given product
promotional pricing - ✔✔temporarily pricing products below the list price, and
sometimes even below cost, to increase short-run sales. discounts, special-event pricing,
limited-time offers, flash sales, cash rebates, low-interest financing, longer warranties,
free maintenance (p 314)
geographical pricing - ✔✔setting prices for customers located in different parts of the
country or world
, FOB-origin pricing - ✔✔Pricing in which goods are placed free on board a carrier; the
customer pays the freight from the factory to the destination.
uniform delivered pricing - ✔✔Pricing in which the company charges the same price
plus freight to all customers, regardless of their location.
zone pricing - ✔✔Pricing in which the company sets up two or more zones. All
customers within a zone pay the same total price; the more distant the zone, the higher
the price
basing-point pricing - ✔✔Pricing in which the seller designates some city as a basing
point and charges all customers the freight cost from that city to the customer
freight-absorption pricing - ✔✔Pricing in which the seller absorbs all or part of the
freight charges in order to get the desired business.
dynamic pricing - ✔✔adjusting prices continually to meet the characteristics and
needs of individual customers and situations
showrooming - ✔✔The shopping practice of coming into retail store showrooms to
check out merchandise and prices but instead buying from an online-only rival,
sometimes while in the store
retailing - ✔✔All the activities involved in selling goods or services directly to final
consumers for their personal, nonbusiness use
retailer - ✔✔A business whose sales come primarily from retailing.
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