Exam (elaborations)
Marketing 3000 Joel Poor Exam 3 (Graded) A+
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Marketing 3000 Joel Poor Exam 3 (Graded) A+
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Marketing 3000 JoelPoor Exam 3 (Graded)
A+
Discount And Allowance Pricing - (CORRECT ANSWER)-Adjustment Strategy where
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companies adjust their prices in order to reward customers (examples: early payment of
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bills, volume purchases, off-season buying)
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Cash Discount - (CORRECT ANSWER)-price reduction to those who pay in cash
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Quantity Discount - (CORRECT ANSWER)-Price reduction to buyers who buy large
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volume
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,Noncumulative quantity - (CORRECT ANSWER)-given for a single purchase (Buy One Get
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One Free)
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Cumulative quantity discount - (CORRECT ANSWER)-Discount is given over a number of
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purchases (Get 9 hair cuts get the 10th free)
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Functional Discount (AKA Trade Discount) - (CORRECT ANSWER)-Offer given by the
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seller to trade-channel members who perform certain functions (selling storing,
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bookkeeping)
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Seasonal Discount - (CORRECT ANSWER)-Discount to buyers who buy merchandise out of
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season
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Trade-in-allowance - (CORRECT ANSWER)-Price reduction given for turning in an old
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item (phone, car)
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Promotional Allowances - (CORRECT ANSWER)-payments or price reductions to reward
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dealers for participating in advertising and sales support programs
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Segmented/ Discriminatory Pricing - (CORRECT ANSWER)-Companies adjust prices to
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allow for differences in customers, products, and locations
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,Customer Segment Prices - (CORRECT ANSWER)-Different customers may pay different
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prices (Example: cars)
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Product Form Pricing - (CORRECT ANSWER)-Different versions of the product are priced
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differently (not variable to actual costs)
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Location Pricing - (CORRECT ANSWER)-Charges different prices for different locations
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Time Pricing - (CORRECT ANSWER)-Price Varies based on time (season, month, day,
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time)
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In order to use segmented pricing... - (CORRECT ANSWER)-1. Market Must Be segment-
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able
2. Segments must show different degrees of demand
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3. Cost of segmenting and watching the market cannot exceed extra revenue obtained by
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price difference
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4. Must be legal
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Psychological Pricing - (CORRECT ANSWER)-consider psychology of pricing not only
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economics (types reference pricing )
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, Reference pricing - (CORRECT ANSWER)-Prices that buyers hold in their mind and what
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they refer to when looking at a given product (what you think the price is based on past
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prices)
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Department store retailers mark-up prices and then offer discounted sales prices (50%
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off) - (CORRECT ANSWER)-Anchoring and Adjustment
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Odd Pricing - (CORRECT ANSWER)-practice of using prices like $.99 $19.95 $99.99
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(May also use Even prices like Nordstrom)
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Promotional Pricing - (CORRECT ANSWER)-Companies will temporarily mark their
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products below list price or cost in order to creating buying excitement and urgency
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(Black Friday)
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Loss Leaders - (CORRECT ANSWER)-products priced below cost
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Special Event Pricing - (CORRECT ANSWER)-Type of promotional pricing where prices
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vary in certain seasons (Back to school sale)
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Low interest Finance - (CORRECT ANSWER)-type of Promotional pricing where
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manufactures may offer longer warranties, free maintenance in order to reduce the
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consumers price
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