| A | B |
|---|
| actual price customer pays for the product | selling price |
| price reduction given for a paying by a certain date | cash discount |
| the cost to produce the product or buy it for resale | cost of goods sold |
| amount by which the original selling price is reduced before the item is sold | mark down |
| costs of producing and marketing the product+plus all related operating expenses | specific profit |
| includes all forms of PAID promotion | advertising |
| Businesses sometimes use this type of promotion to gain support for ideas or causes | advertising |
| The reasons people don't buy are known as | customer objections |
| advertising that violates the law that is "misleading in a material respect" or in any way that could influence the customer’s purchase or use of the product | false advertising |
| disadvantage for a business that buys all of its products from one of THESE is if there is a strike, the buyer might not be able to get the products it needs | supplier |
| A price reduction that manufacturers give to their channel partners in exchange for additional services | trade discount |
| an invoice, credit terms that require the buyer to pay in full in 30 days but would grant the buyer a 2 percent discount for paying within 10 days | 2/10, n/30 |
| example of this might be to be healthy | buying motives |
| Selling is successful when THIS person is satisfied with the purchase | customer |
| An effective method of increasing sales of a product for a short time | coupons |
| A promotional activity designed to familiarize customers with a new product and to create a demand for it in local businesses | product samples |
| Difference between selling price and all costs and expenses | net profit |
| Advertising designed to change a false impression left by earlier misleading information. | corrective advertising |
| Amount added to the cost of goods sold to calculate a selling price | markup |
| Difference between selling price and cost of goods sold | margin |
| Price reduction given to channel partners in exchange for additional services | trade discount |
| Useful guide in determining what to _____________ is feedback, company records, comparison of competing businesses | purchase |
| This includes checking correctness or order and writing thank you notes | follow-up |
| providing all information that allows custoemrs to make informed buying decisions | full disclosure |
