Chapter 12 Vocabulary

Chapter 12 Vocabulary - Price Value Profit Skimming pricing...

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Chapter 12 Vocabulary Price Money or other considerations exchanged for the ownership or use of a good or service Value Ratio of perceived benefits to price Profit Total revenue minus total cost Skimming pricing Setting the highest initial price that customers really desiring the product are willing to pay Penetration Pricing Setting a low initial price on a new product to appeal immediately to the mass market Prestige Pricing Setting a high price so that quality- or status conscious consumers will be attracted to the product and buy it Odd-Even Pricing Setting prices a few dollars or cents under an even number; people pay attention to numbers Target Pricing Manufacturer deliberately adjusting composition and features of a product to achieve the target price to consumers Bundle Pricing Marketing of two or more products in a single package price Yield Management Pricing Charging different prices to maximize revenue for a set amount of capacity at any given time Target Profit Pricing When a firm sets an annual target of a specific dollar volume of profit
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