| What is the only element of the marketing mix that produces revenue? | Price |
| What are the 3 major pricing strategies? | Customer- value, cost-based, and competition- based pricing. |
| What is Value-added Pricing? | Attaching value-added features and services to defferetiate and charging higher prices. |
| What is dynamic pricing and which company use it? | Adjusting prices continually to meet the needs of individual customers. Amazon. |
| What is Cost -based Pricing? | Setting prices based on the cost of producing, distributing and selling the product plus a fair rate of return. |
| What are the Types of Cost with Cost-based Pricing? | Fixed cost (overhead), variable cost, and total cost. |
| What is Good Value Pricing? | Offering just the right combination of quality and good service at a fair price. |
| What is Value-added Pricing? | Attaching value-added features and services to differentiate and charging higher prices. |
| What is Competition-based Pricing? | Setting prices based on competitors strategies, prices, cost, and market offerings. |
| What is the Demand Curve? | A curve that shows the number of units the market will buy in a given time period. |
| What is Target Pricing? | Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met. |
| What is Price Elasticity? | A measure of the sensitivity of demand to changes in price. |
| What is Inelastic demand? | Demand hardly changes with a small change in price. |
| What is Elastic demand? | Demand changes greatly with a small change in price. |
| What are the 2 broad strategies companies face when setting the price for the first time? | Market-skimming & Market-penetration pricing. |
| What is Market-skimming pricing? | Setting a high price to skim maximun revenues from the segments willing to pay the high price. |
| What is Market-penetration pricing? | Setting a low price to attract a large number of buyers and a large market share. |
| When does Market-penetration pricing works? | Market must be price sensitive, and production and distribution cost must decrease as sales volume increase. |
| When does a Market-skimming pricing works? | Works when the quality and image of the product support higher price. |
| What are the 5 product mix pricing situations? | Product-line, optional-product, captive-product, by-product & product-bundle. |
| What is Product Line Pricing and give an example? | Setting price steps between various products in a product line. An example would be cars. |
| What is Optional-Product pricing and give an example? | The pricing of optional products along with a main products. An example would be options for a car. |
| What is Captive-product pricing and give an example? | Setting a price for products that must be used along with the main product. An example would be Gilette + blades. |
| What is a By-product pricing? | Setting a price for by-products to help offset the cost of disposing of them and help the main product's price more competitive. |
| What is Product bundle pricing? | Combining several products and offering the bundle at a reduced price. |
| What are 3 price adjustment strategies? | 1. Discount and allowance pricing.
2. Segmented pricing.
3. Dynamic pricing. |
| What is segmented pricing and give an example? | Selling a product or service at two or more prices, where the difference in prices is not based on differences in cost. An example would be airline seats or student deals |
