| A | B |
|---|
| Discounts offered to buyers as an incentive for paying the invoice amount within a specified number of days. | Cash discounts: |
| A rivalry between businesses to attract scarce consumer dollars. | Competition: |
| The amount paid by a business for products purchased for resale or for use in the production of other goods. | Cost of merchandise sold: |
| Implemented by carefully examining all of the costs associated with carrying a product and selling it to consumers then adding the desired profit to arrive at a selling price. | Cost-oriented pricing: |
| A pricing strategy that examines costs for individual products or services and adds a standard markup. | Cost-plus pricing: |
| Based on a buyer’s total purchases during a specified period of time. | Cumulative quantity discounts: |
| The number of products consumers are willing to buy at a given time and a given price. | Demand: |
| Most effective when selling products with inelastic demand, this pricing strategy requires price planners to estimate the value customers place on products and set prices accordingly. | Demand oriented pricing: |
| Competition between businesses that have similar formats and sell similar products. | Direct competition: |
| Demand that is sensitive to a change in price of the product. | Elastic demand: |
