Captive product pricing is the pricing of products that have both a “core product” and a number of “accessory products.”
It’s a pricing strategy that takes advantage of a product that will be used primarily to attract a large volume of customers.
What is product line and product category
A product line is a unique product category or product brand a company offers.
It can be considered to be a product group that consists of all the related products that fall into that category.
Product mix, on the other hand, is the total number of product lines a company offers to its customers.
How many types of product mix pricing are there
In general, there are 6 types of product mix pricing used by any organisation to take care of their product mix and product lines.
What are 3 pricing methods
Cost-Based Pricing. Value-Based Pricing. Competition-Based Pricing.
What is product line policy
Product policy is concerned with defining the type, volume and timing of products a company offers for sale.
The product policies are general rules set up by the management itself in making product decisions.
Good product policies are the basis on which the right products are produced and marketed successfully.
What is customer segment pricing
Simply put, price segmentation is a whereby prices are differentiated based on willingness to pay.
It is driven by the fact that price sensitivity can vary so much from customer to customer, from product to product, and in all the locations that they use your product..
Which pricing strategy is also known as two part pricing
Two-Part Pricing (also called Two Part Tariff) = a form of pricing in which consumers are charged both an entry fee (fixed price) and a usage fee (per-unit price).
Examples of two-part pricing include a phone contract that charges a fixed monthly charge and a per-minute charge for use of the phone.
What is product mix pricing
A product mix pricing strategy is your roadmap to making multiple sales and leveraging sales in your product lines to increase profitability.
What is product line filling
Adding more products to an existing product Line in order to leave no gaps into which competitors might move.
When product lines are increased by moving up or down market to attract new customers, the process is sometimes called line stretching. +1 -1.
What are the three categories of pricing issues
Issues that arise in the setting of prices can be divided into three categories: (1) the question of interactive versus fixed prices, (2) the pattern of an organization’s prices, and (3) how a price can be expressed when communicated to potential buyers.
What’s the difference between product line and product range
A product line is a family of products derived from the same ancestry. Say an iPhone 4, 6, 7 then 8.
A product range is a group of products that generally have something in common or compliment each other in some way.
Say an iPhone, an iPad and MacBook air are a range, they all do different things but are related.
Why is price lining a good practice for retailers
Rather than setting the retail price based on cost or competition, price lining is a way to simplify the pricing of assorted goods by establishing tiered price points that can support assortments of goods.
This technique fits well with a traditional retail assortment structure of “Good-Better-Best”.
What is an example of psychological pricing
The idea behind psychological pricing is that customers will read the slightly lowered price and treat it lower than the price actually is.
An example of psychological pricing is an item that is priced $3.99 but conveyed by the consumer as 3 dollars and not 4 dollars, treating $3.99 as a lower price than $4.00.
What is an example of odd pricing
Odd-even pricing is a pricing strategy involving the last digit of a product or service price.
Prices ending in an odd number, such as $1.99 or $78.25, use an odd pricing strategy, whereas prices ending in an even number, such as $200.00 or 18.50, use an even strategy.
What is the difference between product line and product assortment
Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers.
The product lines may range from one to many and the company may have many products under the same product line as well.
What are the two 2 pricing strategies used on new products
Types of Pricing Strategies Companies that use a price skimming strategy will typically set prices relatively high versus competitive products.
Contrarily, companies that use a penetration pricing strategy will usually price their new products lower than competitive products.
What is the main difference between product line and product mix give examples
For example, The Coca-Cola Company has its signature Coca-Cola brand, featuring original Coca-Cola, Diet Coke, Coke Zero, Cherry Coke, etc. This would be described as a product line, while their product mix consists of their Coca-Cola, Dr. Pepper, Glaceau Smartwater, Sprite (and so on) product lines.
What are the 5 product mix pricing strategies?
- Captive product pricing – complementary products
- Product line pricing – the products in the product line
- Product bundle pricing – several products
- Optional product pricing – optional or accessory products
- By-product pricing – by-products
What is a product line length
Product Line length refers to the number of products/brands that come under a single product category/line.
Marketeers must make a major trade-off. Having too many brands/products under a single product category or having one or two effective & revenue-generating brands ?
What are the five major pricing issues a manufacturer is likely to face
There are five major pricing issues a manufacturer is likely to face: (1) pricing control in the channel, (2) the impact of major price policy changes, (3) the passing of price increases through the channel, (4) use of price incentives, and (5) the problems created by “gray market” and “free riding”.
What are the new product pricing strategies?
- Price Skimming
- Pricing For Market Penetration
What is an example of captive pricing
Captive pricing happens when an accessory product is necessary to purchase in order to use a core product.
Classic examples of this include products like razor blades for razors and toner cartridges for printers.
This is also called by-product pricing.
What is example of product in marketing mix
Product: variety, quality, design, features, brand name, packaging, services. Price: list price, discounts, allowance, payment period, credit terms.
Place: channels, coverage, assortments, locations, inventory, transportation, logistics. Promotion: advertising, personal selling, sales promotion, public relations.
What is the difference between a product line and a product mix quizlet
Product mix breadth refers to the number of different product lines the company carries For example, the “Colgate world of care” includes a fairly contained product mix, consisting of personal and homecare products Product line depth refers to the number of versions offered for each product in the line.
What is difference between product line and product mix
A product line is one line of similar products that are sold within a company, whereas a product mix is the combined total of all the product lines sold in a company.
What type of pricing is bundle pricing
What is bundle pricing? Bundle pricing is a business strategy where companies group several products together into a bundle and sell them at a single price, rather than attribute individual prices to each item.
This means that a bundle is now an individual product.
What is bundle pricing with example
What are price bundling examples? When price bundling, companies will sell two products together at a lower price than the sum of the individual price of each product.
Common bundle pricing examples are cable TV and mobile plans and fast food restaurant value meal combos.
What is the most effective pricing strategy
Value pricing is perhaps the most important pricing strategy of all. This takes into account how beneficial, high-quality, and important your customers believe your products or services to be.
What is new product line
When a company offers a product from a new category that they haven’t previously offered, then it would be a new product line.
What is the difference between product line stretching and product line filling
Line Stretching Vs Line Filling The difference is that life filling is when you add more product items within the present range of the product line.
On the other hand, line stretching is when you increase the current product line beyond the current product range.
Sources
http://newprairiepress.org/cgi/viewcontent.cgi?filename=23&article=1012&context=ebooks&type=additional
https://www.profitwell.com/recur/all/pricing-strategy-guide/
https://www.investopedia.com/terms/f/four-ps.asp
