| A | B |
|---|
| Bartering | oldest form of pricing that involves the exchange of goods or services for a mutually agreed-on amount of money |
| return on investment | Profit divided by investment |
| Consumer Goods Pricing Act | prohibits the practice of manufacturers punishing retailers for not selling something at the price that they wanted |
| Retailers | These businesses are prohibited from using the loss-leader technique to attract customers if they are in states with minimum price laws |
| unusual | the more a product is THIS, the more freedom a business has to set higher prices |
| Outdated products | These items in the US may actually be in the growth stage in other global markets |
| Too low | it is possible to actually set a price that is THIS |
| penetration pricing | This pricing strategy of setting very low prices when a product is new, cannot not be used long term |
| Skimming pricing | This pricing strategy of setting high prices on new products will have many price changes after the high initial price |
| flexible | Computer technology and databases make THIS pricing where customers pay varying amountsmore feasible |
| diminishing marginal utility | this concept states that consumers will buy only a certain amount of a product even though its price is low |
| market share | firm's percentage of the total sales volume generated by all competitors in a given market |
| books | one of the products that was adversely affected by price wars |
| cost and expense analysis | most price planning begins with what |
| Unfair Trade Practices Law | law prohibits companies from selling products at very low prices |
| maturity | the product life-cycle stage is a product when a product’s marketers are looking for new market segments |
| psychological pricing | examples of this include odd-even pricing and everyday low pricing |
| seasonal discount | discount a store gets for buying Christmas items in July |
| promotional | the most temporary pricing strategy |
| discount pricing | 3/10 net 30 extra 60 is an example of this |
| value | To understand pricing, a marketer must also understand THIS matter of anticipated satisfaction |
| Price examples | Wages, rent, and dues |
| Inelastic | Milk, bread, and other necessities often have this type of demand |
| judgements | Some customers make ___________________ about products based on the products’ prices |
| demand-oriented pricing | Because there is a greater demand for floor seats at concerts and events, they sell for more based on this pricing strategy |
| cost-oriented pricing | where cost is determined for an item and then a desired profit is added in to arrive at selling price |
| even pricing | Selling items at $20, $30, $100 for instance |
| Competitive bid pricing | When a company prices its products in line with bids submitted by competitors |
| demand elasticity | the degree to which consumers’ desires for a product are affected by price |
| price gouging | prices set higher than normal upon sudden high demand |
| pricing | this process of determining a value on items, helps define a company’s image |
| break-even point | when sales revenue equals the cost and expenses of making and distributing a product |
| return on investment | a product’s relative profitability |
| price fixing | an agreement among competitors to establish price ranges |
| price | the value of money or of a nonmonetary item placed on a good or service |
| loss leader | an item priced at cost or below cost to draw customers |
