Number of flashcards in this category: 22.
1.	reference prices		- Consumers have ideal base price they are willing to pay. ex: Taco Bell too expensive, re-priced based on reference prices.
2.	channel based		often for raw materials, base price on where distributed and how far to reach desired channels
3.	3. determining costs		(see mktg math)
4.	payment pricing		Give price in payment amounts, not full price. (e.g. cars)
5.	e-commerce pricing		opens to a wider audience, especially for select luxury items in which desired customers and spread about geographically
6.	6. pricing tactics		(see various tactics) -
7.	elasticity		- elastic products are those in which a change in price causes change in qty. demanded (luxury goods, flexible, substitutes available) - inelastic goods are often staples or necessities: a drastic change in price does not change demand (gas, medications) E = %change in demand/% change in price
8.	bundling		Putting together related products: - introduce to new products - charge more - perceived "more value"
9.	price-lining		Having similar products at various price points. (With small variation in design) ex: Cuisinart, Whirlpool, KitchenAid
10.	AirMount		Tried to skim it to offices. - Should have penetrated at low price. - Easy to understand/use. - Captive pricing with the tool + sheets.
11.	5. pricing strategies		- cost-plus: determine your costs, set a margin for your profit (not always most strategic) - competition-based: going rate, same as similar products - price leadership: "undercut leader", leads to price war, not always feasible for small companies - target-cost: pick price, design around that target price by reverse engineering it (needs time) - yield management: things that are time based like plane seats; save quantity and price according to necessity at a given time - value-based: EVC economic value to customer (usefulness) - EDLP - skim/penetrate/trial prices
12.	price-quality inferences		higher price = higher quality
13.	Hybrid Cars		Aren't chosen for their price, rather people buy for psychological and emotional reasons (status symbol)
14.	odd-even pricing		odd: ends in cents (infers that its cheaper) even: ends in whole dollars (infer that it's higher quality, more expensive)
15.	2. estimating demand		- see demand curve: find the right price point at which people buy in enough amount @ certain price (maximize revenues) - inverse luxury goods curve: too low, or too high, sales drop - "sweet spot" - see elasticity
16.	promotional cues		stores put extreme discount on items, but expecting to make sales because you buy other stuff as well ex: grocery (limit 1 on good deals), you buy other stuff too
17.	steps to pricing (6)		1. develop pricing objectives 2. estimate demand 3. determine costs 4. evaluate the pricing environment 5. choose a pricing strategy 6. choose pricing tactics
18.	two part pricing		set-up fee, and then monthly fee
19.	dynamic pricing		e.g. Google Adwords How much are YOU willing to pay?
20.	4. pricing environment		Look at context: - inflation/recession - competition: monopoly? many other companies? - channel concerns (collaborators, shipping costs) - consumer trends - gov't concerns (laws)
21.	captive pricing		camera and film, razors and blade
22.	1. pricing objectives		- gain sales/market share (not necessarily profit) - profit (ex. Steinway's priced for profit, not mkt share) - competitive effect (disrupt competition by price slashing) - gain customer satisfaction - enhance image (high price = high quality)