| A | B |
|---|
| Markup pricing | adds a predetermined percentage to the cost of products |
| Cost-plus pricing | (2) Examines costs for individual products or services then adds a standard markup |
| Demand oriented pricing | a. Most effective when selling products with inelastic demand |
| Competition oriented pricing | b. This strategy is unique in that it does not consider costs and expenses or profit goals in the process |
| Promotional pricing | Involves selling a product at a temporarily lower price in order to attract customers. |
| Loss leaders | Selling a product below cost in an effort to increase customer traffic. |
| Special event pricing | designed to attract customers |
| Fixed pricing | same prices to all customers regardless of the quantity of the purchase. |
| Variable pricing | encourages customers to bargain with sellers in an effort to obtain the best price |
| Price lining | Establishing price points between products in a product line. |
| Unit pricing | per ounce, pound, or serving |
| Psychological pricing | based on belief that customers base their perceptions of products on price |
| Odd/even cent pricing | prices ending in odd numbers ($5.99) communicate a bargain |
| Prestige pricing | Believing that customers equate high price with high quality |
| Skimming pricing | Setting a high price to capitalize on demand when introducing a product |
| Penetration pricing | Setting a low price to motivate customers to purchase when introducing a product into a competitive market |
