General approaches to pricing are of three types; Cost-Based Pricing Approach (cost-plus pricing, break analysis, and target profit pricing).
Buyer-Based Pricing Approach (perceived-value pricing). Competition-Based Pricing Approach (going-rate and sealed bid pricing).
Which of the following is an external influence that affects pricing decisions
The elasticity of supply and demand and the goodwill of the company are external factors governing the prices since these factors are not related to the picing of the product internally.
When would it be most beneficial to use the skimming approach to pricing quizlet
3. Skimming pricing is an effective strategy when: – Enough prospective customers are willing to buy the product at the high initial price to make these sales profitable.
What is market economy explain its advantages and disadvantages
Government interventions include price-fixing, licensing, quotas, and industrial subsidies. Benefits of a market economy include increased efficiency, production, and innovation.
Disadvantages include monopolies, no government intervention, poor working conditions, and unemployment.
What is a pricing strategy quizlet
Pricing strategy by which a firm charges the highest initial price that customers will pay.
As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment.
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What factors do organizations consider when making price decisions
These factors include the offering’s costs, the customers whose needs it is designed to meet, the external environment—such as the competition, the economy, and government regulations—and other aspects of the marketing mix, such as the nature of the offering, the stage of its product life cycle, and its promotion and
What are drawbacks of price skimming
Disadvantages of price skimming 1. High prices may not evoke quick sales. 2. As very few people buy the product, the brand loyalty of the product may suffer.
What is the key difference between cost-based pricing and value-based pricing quizlet
Cost-based pricing is based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk. customer value-based pricing uses buyers’ perceptions of value as the key to pricing.
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Which factors reduce the cost of borrowing from a bank?
- Higher credit scores can mean lower rates
- Larger down payments can reduce rates
- Shorter terms can have lower rates
- Adjustable rates can be a good option
- Final word
Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States
Uniform-delivered pricing is a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
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Is price skimming ethical
Price skimming can also be considered price discrimination, which is the strategy of selling the same product at different prices to different groups of consumers.
In some cases, this strategy is against the law, but the actual conditions that define illegal price discrimination are shady, to say the least.
What are the negative and positive aspects of price ceilings and price floors
What are the negative and positive aspects of price ceilings and price floors? Shortages and surpluses can become permanent if the price ceiling is below the equilibrium price and the price floor is above the equilibrium price.
However, price ceilings and price floors attempt to create equity and security.
What is the opposite of skimming pricing
The opposite of skim pricing is Penetration Pricing. This is where you deliberately set prices below what the market would otherwise charge, so that price becomes the main promotional message (“It’s a bargain!”).
What pricing strategy did NASA use to pay Lockheed Martin
What pricing strategy did the National Aeronautics and Space Administration (NASA) use to pay Lockheed Martin for the Orion lunar spacecraft? penetration pricing.
What are some examples of price skimming
Good examples of price skimming include innovative electronic products, such as the Apple iPhone and Sony PlayStation 3.
For example, the Playstation 3 was originally sold at $599 in the US market, but it has been gradually reduced to below $200.
What is the illegal about pricing
Predatory pricing is the illegal act of setting prices low to attempt to eliminate the competition.
Predatory pricing violates antitrust laws, as it makes markets more vulnerable to a monopoly.
What is an example of price skimming
Price skimming examples Electronic products – take the Apple iPhone, for example – often utilize a price skimming strategy during the initial launch period.
Then, after competitors launch rival products, i.e., the Samsung Galaxy, the price of the product drops so that the product retains a competitive advantage.
What is a skimming price strategy
Skim pricing, also known as price skimming, is a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market.
Skim pricing is the opposite of penetration pricing, which prices newly launched products low to build a big customer base at the outset.
What is successful differentiation strategy
A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace.
The main objective of implementing a differentiation strategy is to increase competitive advantage.
What is the amount of money charged for a product or service
Price is the amount of money charged for a product or a service; the sum of the values that customers exchange for the benefits of having or using the product or service.
What is skimming and what are the benefits of Skimming
With skimming, you’ll be able to cover vast amounts of material more quickly and save time for everything else that you have on your plate.
Maybe you don’t have time to finish your reading before class, but skimming will help you get the main points and attend class much more prepared to maximize in-class learning.
Under which condition would market skimming be likely to be a viable strategy
Under which conditions would market skimming be likely to be a viable strategy? There is insufficient market capacity and competitors cannot make more of the product.
What is dynamic pricing quizlet
dynamic pricing. -adjusting prices continually to meet the characteristics and needs of individual customers and situation. -setting prices for a good or service based on the demand for that good or service at the moment based on the availability of supply. -ex.
When would it be most beneficial to use the skimming approach
3. Skimming pricing is an effective strategy when: – Enough prospective customers are willing to buy the product at the high initial price to make these sales profitable. – The high initial price will not attract competitors.
What is the best approach to take when exporting to a deflationary market
What is the best approach to take when exporting to a deflationary market? Keep prices low and raise brand value.
When using a free trade zone (FTZ) or free port for exporting, payment of import duties is postponed.
How do markdowns benefit a store
Marking prices down helps move inventory. Most often, markdowns are monetary discounts to stimulate sales of slow-moving inventory that is most often targeted at price sensitive consumers who have been willing to wait for a price reduction, at the risk of the product being sold out.
Which situation is an example of skimming quizlet
Form of skimming occurs when employees, who open the daily mail, take the incoming checks and do not record them.
Sources
https://www.profitwell.com/recur/all/market-based-pricing
https://prisync.com/blog/competitive-pricing-advantages-vs-disadvantages/
https://prisync.com/blog/everyday-low-pricing/
