| A | B |
|---|
| cost-oriented pricing | Implemented by carefully examining all of the costs associated with carrying a product and selling it to consumers then adding the desired profit to arrive at a selling price. |
| cost-plus pricing | A pricing strategy that examines costs for individual products or services and adds a standard markup. |
| demand-oriented pricing | Most effective when selling products with inelastic demand, this pricing strategy requires price planners to estimate the value customers place on products and set prices accordingly. |
| fixed pricing | A policy under which an organization charges the same prices to all customers regardless of the quantity of the purchase. |
| loss leaders | A product that is sold below costs in an effort to increase customer traffic. |
| mark-up pricing | Pricing strategy that adds a predetermined percentage to the cost of products. |
| odd/even cent pricing | Psychological pricing technique based on the principle that prices ending in odd numbers ($5.99) communicate a bargain and prices ending in even numbers ($6.00) communicate quality. |
| penetration pricing | Setting a low price when introducing a product into a competitive market to motivate customers to purchase. |
| prestige pricing | Pricing technique that sets a higher-than-average price for products in order to communicate quality and status. |
| price lining | Establishing price points between products in a product line to communicate differences in quality and/or service to consumers. |
| promotional pricing | Selling a product at a temporarily lower price in order to attract customers. |
| skimming pricing | Setting a high price when introducing a product that has little competition and will appeal to customers who like to be the first to have the latest products. |
| unit pricing | Stating the price of a product per unit of standard measure. |
| variable pricing | Pricing technique that encourages customers to bargain with sellers in an effort to obtain the best price for products and services. |
