Marketing 3000 Joel Poor exam 3 Questions and Answers
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Course
Joel Poor
Institution
Joel Poor
Discount And Allowance Pricing
o :## Adjustment Strategy where companies adjust their prices in order to reward
customers (examples: early payment of bills, volume purchases, off-season
buying)
Cash Discount
o :## price reduction to those who pay in cash
Quantity Discount
o :## Price reduc...
Marketing 3000 Joel Poor exam 3 Questions and Answers
Discount And Allowance Pricing
o :## Adjustment Strategy where companies adjust their prices in order to reward
customers (examples: early payment of bills, volume purchases, off-season
buying)
Cash Discount
o :## price reduction to those who pay in cash
Quantity Discount
o :## Price reduction to buyers who buy large volume
Noncumulative quantity
o :## given for a single purchase (Buy One Get One Free)
Cumulative quantity discount
o :## Discount is given over a number of purchases (Get 9 hair cuts get the 10th
free)
Functional Discount (AKA Trade Discount)
, 2024/2025 2|Page
o :## Offer given by the seller to trade-channel members who perform certain
functions (selling storing, bookkeeping)
Seasonal Discount
o :## Discount to buyers who buy merchandise out of season
Trade-in-allowance
o :## Price reduction given for turning in an old item (phone, car)
Promotional Allowances
o :## payments or price reductions to reward dealers for participating in
advertising and sales support programs
Segmented/ Discriminatory Pricing
o :## Companies adjust prices to allow for differences in customers, products, and
locations
Customer Segment Prices
o :## Different customers may pay different prices (Example: cars)
Product Form Pricing
, 2024/2025 3|Page
o :## Different versions of the product are priced differently (not variable to actual
costs)
Location Pricing
o :## Charges different prices for different locations
Time Pricing
o :## Price Varies based on time (season, month, day, time)
In order to use segmented pricing...
o :## 1. Market Must Be segment-able
2. Segments must show different degrees of demand
3. Cost of segmenting and watching the market cannot exceed extra revenue obtained by
price difference
4. Must be legal
Psychological Pricing
o :## consider psychology of pricing not only economics (types reference pricing )
Reference pricing
, 2024/2025 4|Page
o :## Prices that buyers hold in their mind and what they refer to when looking at
a given product (what you think the price is based on past prices)
Department store retailers mark-up prices and then offer discounted sales prices (50%
off)
o :## Anchoring and Adjustment
Odd Pricing
o :## practice of using prices like $.99 $19.95 $99.99
(May also use Even prices like Nordstrom)
Promotional Pricing
o :## Companies will temporarily mark their products below list price or cost in
order to creating buying excitement and urgency (Black Friday)
Loss Leaders
o :## products priced below cost
Special Event Pricing
o :## Type of promotional pricing where prices vary in certain seasons (Back to
school sale)
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