| A | B |
|---|
| markup pricing | when the price of the product is determined by adding a dollar amount to the cost of making the product |
| cost plus pricing | the price is determined by adding fixed and variable costs plus a desired profit |
| skimming pricing | is a pricing policy that sets a very high price for a new product. usually when demand is higher than supply |
| penetration pricing | when the price for a new product is set very low in order to gain customers from competitors |
| product mix pricing strategies | involve adjusting prices to maximize the profits for a group of projects rather than on just one item |
| price lining | special pricing that sets a limited number of prices for speccific groups or lines of merchandise |
| bundle pricing | a company offers several complementary products in a package that is sold at a single price |
| geographical pricing | refers to price adjustments required because of location of customer for delivery of products |
| segmented pricing | uses two or more prices for a product even though there is no difference in the items cost |
| psychological pricing | pricing techniques that help create an illusion for customers |
| prestige pricing | sets higher than average prices to suggest status and high quality to the consumer |
| promotional pricing | used in conjunction with sales promotions where prices are reduced for a short period of time |
