Question

Match the following terms to the definition that best describes the term.

___ Skimming pricing

    ___ Distribution

    ___ Retailers

    ___ Demand-based pricing

___ Target costing

    ___ Prestige pricing

___ Odd-even pricing

  ___ Penetration pricing

___ Cost-based pricing

___ Wholesalers

    ___ Supply chain

     Pricing strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit.

     Practice of pricing products a few cents (or dollars) under an even number.

     Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.

     Intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them.

     Flow that begins with the purchase of raw materials and ends in the sale of a finished product to an end user.

     Pricing strategy in which a seller generates early profits by starting off charging the highest price customers will pay.

     Intermediaries who buy goods from producers and sell them to consumers.

     Pricing strategy that bases the price of a product on how much people are willing to pay for it.

All activities involved in getting the right quantity of a product to the right customer at the right time and at a reasonable cost.

     Pricing strategy that bases the selling price of a product on its cost plus a reasonable profit.

     Practice of setting a price artificially high to foster the impression that it is a product of high quality.

Answer 1

Skimming Price-Pricing strategy in which a seller generates early profits by starting off charging the highest price customers will pay.

Distribution-All activities involved in getting the right quantity of a product to the right customer at the right time and at a reasonable cost.

Retailers-Intermediaries who buy goods from producers and sell them to consumers.

Demand Based Pricing-Pricing strategy that bases the price of a product on how much people are willing to pay for it.

Target Costing-Pricing strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit.

Prestige Pricing-Practice of setting a price artificially high to foster the impression that it is a product of high quality.

Odd even pricing-Practice of pricing products a few cents (or dollars) under an even number.

Penetration pricing-Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.

Cost based pricing-Pricing strategy that bases the selling price of a product on its cost plus a reasonable profit.

Wholesalers-Intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them.

Supply chain-Flow that begins with the purchase of raw materials and ends in the sale of a finished product to an end user.