| A | B |
|---|
| breakeven point | the quantity of a product that must be sold for total revenues to match total costs at a specific price |
| consumer credit | credit extended by a retail business to the final consumer |
| discounts and allowances | reductions in a price given to the customer in exchange for performing certain marketing activities or accepting something other than what would normally be expected in the exchange |
| elastic demand | market situation in which a price decrease will increase total revenue |
| elasticity of demand | the relationship between changes in a product''s price and the demand for that product |
| flexible pricing policy | allows customers to negotiate price within a price range |
| FOB pricing | identifies the location from which the buyer pays the transportation costs and takes title to the products purchased |
| gross margin | the difference between the cost of the product and the selling price |
| inelastic demand | market situation in which a price decrease will decrease total revenue |
| markdown | a reduction from the original selling price |
| markup | an amount added to the cost of a product to determine the selling price |
| net profit | the difference between the selling price and all costs and operating expenses associated with the product sold |
| one-price policy | all customers pay the same price |
| operating expenses | all costs associated with business operations |
| penetration price | a very low price designed to increase the quantity sold of a product by emphasizing the value |
| price lines | distinct categories of prices based on differences in product quality and features |
| product cost | includes the cost of parts and raw materials (or the price paid to a supplier for finished products), labor, transportation, insurance, and an amount for damaged, lost, or stolen products |
| selling price | the price charged for a product or service |
| skimming price | a very high price designed to emphasize the quality or uniqueness of the product |
| trade credit | credit offered by one business to another business, often because of the time lag between when a sale is negotiated and when the products are actually delivered |
| zone pricing | different product or transportation costs set for specific areas of the seller’s market |
