| A | B |
|---|
| prestige pricing | pricing technique that sets higher‐than‐average prices to suggest status and high quality to the consumer. |
| bundle pricing | pricing technique in which a company offers several complementary products in a package that is sold at a single price. |
| penetrating pricing | setting prices lower than competitors |
| memorandum buying | a buying process in which the supplier agrees to take back any unsold goods by a certain pre‐established date. |
| price lining | special pricing technique that requires a store to offer all merchandise in a given category at certain prices |
| price gouing | pricing products unreasonably high when there is a high demand resulting from a monopoly or natural disaster. |
| skimming price | a pricing policy that sets a very high price for a new product. |
| consignment buying | paying for goods only after the final customer purchases them. |
| product positioning | the image a product that sets it apart from the competition |
| product line width | the number of different product lines business manufacturers or sells |
| sales quota | dollar or unit sales goals set for the sales staff to achieve in a specified period of time |
| substitution method | a selling method that involves recommending a different product that would still satisfy the customer’s needs. |
| non-price competition | businesses choose to compete on the basis of factors that are not related to price. Factors include quality of the products, service and financing, business location and reputation |
| odd-even pricing | technique that involves setting prices that all end in either odd or even numbers |
| everyday low prices | low prices set on a consistent basis with no intention of raising them or offering discounts in the future |
| markup | the process where resellers add a dollar amount to its cost to arrive at a price |
| suggestion selling | a method of selling in which a salesperson recommends additional goods or services to the customer |
| price discrimination | charging different prices to similar customers in similar situations |
| price fixing | when competitors agree on certain price within which they can set their own prices |
| loss leader | item priced at or below cost to draw customers into a store |
| personal selling | requires that a company employ sales representatives generates and maintains direct contact with customers |
| markdown | reducing prices |
| push policy | promotes product to large retailers that sell its product‐ Relies on personal selling |
| start-up costs | projection of how much money a new business owner will need for the business’s first year in operation |
| utility | value of a giving good or service |
| market segmentation | process of analyzing and classifying customers in a given market to create smaller, more precise target markets. |
| direct distribution | sales of goods or services directly to the customer, with no intermediaries |
| contract carrier | For‐hire trucking companies that provide equipment and drivers for specific routes |
| promotional mix | combination of strategies and a cost effective allocation of resources |
| price competition | focuses on the sale price of a product The assumption is that all other things being equal, consumers will buy the product that are the lowest in price. |
