Marketing Final Ch. 20

A basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle

A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market

Charging a price identical to or very close to the competition's price

An agreement between two or more firms on the price they will charge for a product

The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market

A payment to a dealer for promoting the manufacturer's products

Setting the price at a level that seems to the customer to be a good price compared to the price of other options

A price tactic that requires the buyer to absorb the freight costs from the shipping point

A price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities

A price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store

A price tactic that tries to get consumers into a store through false or misleading prcie advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise

Marketing two or more products in a single package for a special price

An extra fee paid by the consumer for violating the terms of the purchase agreement

Costs that are shared in the manufacturing and marketing of several products in a product line