Marketing Essentials

Section 2: Strategies in the Pricing Process

After You Read Online Action

Key Terms and Concepts

1. The key factor in determining price lines is the make the price differences great enough to represent low, middle, and high prices for the category of goods being offered.
2. Bundling discourages comparison shopping because it is often difficult to compare one package deal with another because each package deal contains different offerings.
3. Four factors that can help marketers utilize segmented pricing strategies are buyer identification, product design, purchase location, and time of purchase.

Academic Skills

4. For retailers $21, and for wholesalers $18,90; $35 X .40 = $14; $35 -$14 = $21; $21 X .10 = $2.10; $21.00 - $2.10 = $18.90
5. Factors that would come into play include: tariffs, quotas, monetary exchange rate as well as economic and competitive situations in each country. You would also have to determine how much a customer in those countries would be willing to pay.