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Chapter 11 - Pricing Strategies

Across
Sellers must set prices without talking to competitors
means the company charges the same price plus freight to all customers, regardless of location
a strategy with high initial prices to “skim” revenue layers from the market
used when a company sells a product at two or more prices even though the difference is not based on cost
sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
takes into account optional or accessory products along with the main product
when prices are temporarily priced below list price or cost to increase demand
combines several products at a reduced price
when prices are set in a specific country based on country-specific factors
takes into account the cost differences between products in the line, customer evaluation of their features, and competitors’ prices
Down
means the seller absorbs all or part of the actual freight charge as an incentive to attract business in competitive markets
means that a seller selects a given city as a “basing point” and charges all customers the freight cost associated from that city to the customer location, regardless of the city from which the goods are actually shipped