Marketing Chapter Seventeen

  1. Markup?
    A dollar amount added to the cost of product to get the selling price.
  2. Markup Chain?
    The sequence of markups that chains use at different channels which determines the price structure of the whole channel.
  3. Stockturn Rate?
    Th enumber of times the average inventory is sold in a year.
  4. Average-Cost Pricing?
    Adding a reasonable markup to the average cost of a product.
  5. Total Fixed Cost?
    The sum of those costs that are fixed in total.
  6. Total Variable Cost?
    The sum of changing expenses that are clsely related to output.
  7. Average Cost (by unit)?
    Is obtained by dividing total cost by the related quantity.
  8. Average Fixed Cost (by unit)?
    Dividing total cost by the related quantity.
  9. Average Variable Cost?
    Obtained by dividing total variable cost by the related quantity.
  10. Break-even Analysis?
    Evaluates whether the firm will be able to break-even or cover all costs.
  11. Break-Even Point?
    the point where firm's total cost will just equal total revenue.
  12. Contribution per unit?
    • The assumed selling price per unit minus thevariable cost per unit.
    • Total fixed cost divided by fixed cost contribution per unit.
  13. Value in use Pricing?
    Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used.
  14. Leader Pricing?
    Setting prices very low to get customers into retail stores.
  15. Bait Pricing?
    Setting some very low prices to attract customers bu once in the store attempt to sell higher priced models and brands.
  16. Psychological Pricing?
    Setting prices that have special appeal to customers.
  17. Odd-Even Pricing?
    Setting prices that end in certain numbers.
  18. Price Lining?
    Setting a few price levels for a product line and then marking all items at these prices.
  19. Demand-backward Pricing?
    Setting an acceptable final consumer price and working backward to what acproducer can change.
  20. Prestiege Pricing?
    Setting a rather high price to suggest high quality or high status.
  21. Full-line Pricing?
    Setting prices for a whole line of prices.
  22. Complimentary Product Pricing?
    Setting prices on several products as a group.
  23. product Bundle Pricing?
    Setting one price for a set of prices.
  24. Bid Pricing?
    Means offering a specific price for each possible job rather than setting a price that applies for all costumers.
  25. Negotiated Price?
    A price set based on bargaining between the buyer and the seller.
Card Set
Marketing Chapter Seventeen
Marketing Chapter Seventeen