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5.1 AMA PCM Pricing Concepts & Methods Exam With Accurate Answers
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5.1 AMA PCM Pricing Concepts & Methods Exam With Accurate Answers...
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5.1 AMA PCM Pricing Concepts & Methods Exam WithAccurate Answers
Above-, At- Below-Market Pricing - ANSWER Pricing a market price for a product or
product class based on a subjective feel for the competitors' price or market as the
benchmark.
Bait Pricing (or Bait and Switch) - ANSWER A product is promised at a low price but is
either not in stock or a less attractive product is sold.
Barter - ANSWER A type of trade wherein people exchange goods and services without
using any money.
Break-Even Point - ANSWER The point wherein the money earned from selling the
product equals the product's production and distribution costs.
Bundle Pricing - ANSWER Selling unique multiple items offered together at a special
price.
Captive Pricing - ANSWER Pricing the basic product in a product line low, while pricing
related items higher
Competition-Based Pricing - ANSWER A pricing strategy based on what all the other
competitors are doing.
Competition-Oriented Pricing Approach - ANSWER A pricing strategy that is based upon
what the competition does.
Cost-Oriented Pricing Approach - ANSWER Pricing approaches in which a price-setter
, stresses the cost side of the pricing problem, not the demand side. Price is set by
looking at the production and marketing costs and then adding enough to cover direct
expenses, overhead, and profit.
Demand Curve - ANSWER A graph showing how much of a particular product a
household would be willing to buy at various prices.
Price Addition or Cost-Plus Pricing - ANSWER summing up the total unit cost of
providing a product or service and adding a specific amount to the cost to arrive at a
price
Discounts - ANSWER temporary price reductions, often given to boost sales.
Everyday Low Pricing - ANSWER long-term pricing strategy, intended to derive
profitability through high sales volume.
Experience Curve Pricing - ANSWER A pricing method keyed to the learning effect,
which states that the unit cost of many products and services decreases by 10 percent
to 30 percent each time a firm's experience at producing and selling them doubles,
leading to potential very rapid price cuts.
External Reference Price - ANSWER A price provided by a marketer which the
consumer is to use as a reference with which to compare the current price.
Fixed Cost - ANSWER A cost that occurs at regular intervals and that remains, more or
less, unchanged regardless of the level of output or sales revenue of the firm.
FOB Origin Pricing- ANSWER The "free on board" price the seller quotes that includes
only the cost of loading the product onto the vehicle and states the name of the location
where the loading must occur-seller's factory or warehouse.
Geographic Pricing - ANSWER When price reflects different costs related to
transportation and other costs associated to hysical distance between buyers and
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