essentials of entrepreneurship and small
business management final Chapter 10-
Questions and Answers
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Terms in this set (71)
products that are so new and unique that they
Revolutionary products
transform existing markets
once a company has invested time and money
Skimming pricing strategy developing a unique new product, in order to recoup
some of the high R&D cost,
work best in markets where no "elite" segments exist
Penetration pricing
or in highly competitive markets where similar
strategies
products are trying to gain a foothold
A pricing technique that sets different prices on the
Customized Or Dynamic same services for different customers using the
pricing information that a company collects about its
customers
Is a short term strategy that assumes that competition
Life cycle pricing
will eventually emerge.
a pricing technique that sets prices that always end in
odd pricing
numbers like "99" for prices such as 9.99 and 19.99
CD connection sells popular Cds at three price level.
Price lining
11, 14 and 17. .
, is a technique that involves marking down the normal
price of a popular item in an attempt to attract more
Leader pricing
customers who make incidental purchases of other
items at regular price
Setting prices for products and services requires
entrepreneurs to balance a multitude of complex
produce a product
forces as entrepreneurs determine prices for their
goods and services that will draw customers and:
A common pricing mistake extra value, convenience, service, and quality they
entrepreneurs make is offer their customers.
lowering prices because
they fail to recognize the
The top business increased price sensitivity of customers.
challenge that drives
pricing decisions is the
________ frequently convey High prices
the idea of quality,
prestige, and uniqueness
to customers.
A key ingredient to setting target market
prices properly is to
understand a company's:
An entrepreneurial All the above provide the opportunity for
company can differentiate differentiation.
itself by creating a
distinctive image in
customers' minds or by
offering:
business management final Chapter 10-
Questions and Answers
Save
Terms in this set (71)
products that are so new and unique that they
Revolutionary products
transform existing markets
once a company has invested time and money
Skimming pricing strategy developing a unique new product, in order to recoup
some of the high R&D cost,
work best in markets where no "elite" segments exist
Penetration pricing
or in highly competitive markets where similar
strategies
products are trying to gain a foothold
A pricing technique that sets different prices on the
Customized Or Dynamic same services for different customers using the
pricing information that a company collects about its
customers
Is a short term strategy that assumes that competition
Life cycle pricing
will eventually emerge.
a pricing technique that sets prices that always end in
odd pricing
numbers like "99" for prices such as 9.99 and 19.99
CD connection sells popular Cds at three price level.
Price lining
11, 14 and 17. .
, is a technique that involves marking down the normal
price of a popular item in an attempt to attract more
Leader pricing
customers who make incidental purchases of other
items at regular price
Setting prices for products and services requires
entrepreneurs to balance a multitude of complex
produce a product
forces as entrepreneurs determine prices for their
goods and services that will draw customers and:
A common pricing mistake extra value, convenience, service, and quality they
entrepreneurs make is offer their customers.
lowering prices because
they fail to recognize the
The top business increased price sensitivity of customers.
challenge that drives
pricing decisions is the
________ frequently convey High prices
the idea of quality,
prestige, and uniqueness
to customers.
A key ingredient to setting target market
prices properly is to
understand a company's:
An entrepreneurial All the above provide the opportunity for
company can differentiate differentiation.
itself by creating a
distinctive image in
customers' minds or by
offering:
