| A | B |
|---|
| Costs that remain constant over a period of time regardless of sales volume. | Fixed costs: |
| (One-Price Policy) A policy under which an organization charges the same prices to all customers regardless of the quantity of the purchase. | Fixed pricing: |
| Competition between businesses that have dissimilar formats and sell dissimilar products. | Indirect competition: |
| Demand that is not sensitive to a change in price of the product. | Inelastic demand: |
| A product that is sold below costs in an effort to increase customer traffic. | Loss leaders: |
| Reductions in selling price used to stimulate sales, dispose of slow moving/discontinued merchandise, meet competitors’ prices, and/or increase customer traffic. | Markdowns: |
| The price that prevails in the market for a particular good at a specific time. | Market price: |
| Pricing strategy that adds a predetermined percentage to the cost of products. | Markup pricing: |
| Competition based on factors other than price as a means to attract customers. | Non-price Competition: |
| Reductions given to buyers for a one-time purchase or shipment. | Non-cumulative quantity discounts: |
| Psychological pricing technique based on the principle that prices ending in odd numbers ($5.99) communicate a bargain and prices ending in even numbers ($6.00) communicate quality. | Odd/even cent pricing: |
| The opportunity cost is the option that is given up when a consumer chooses one product/service over another. | Opportunity cost: |
