| A | B |
|---|
| producers | group that gathers information about the types of goods and services that customers are likely to purchase |
| goes down | when price of a product goes up the demand |
| taxation | 1 way government discourages sales of certain products |
| price | supply and demand influences |
| Pure competition | exists when there are many companies offering products that consumers view as interchangable |
| Psychological pricing | when retailers create an illusion with prices that end in $.98 or $.99 |
| Prestige pricing | companys such as Ruth Chris use this type of pricing strategy |
| price disrcimination | An exception to THIS which is usually illegal would be volume pricing given to companies such as Wal-mart |
| expansion | upside of the business cycle |
| decline | during a recession sports and entertainment industries sales |
| Retro Television | bringing back re-runs of popular old television shows |
| monopolies | Electric and water companies are examples of legally regulated THESE |
| one price policy | where all customers pay the same price for a product |
| scarcity | the idea that producers have limited resources for production and consumers have limited money to spend is known as |
| anti-trust laws | These were developed to prevent monopolies |
| price discrimination | Valid reasons for differences in THIS include:distribution costs to different locations volume of sales changing market conditions |
| promotional | no-interest-for-12-months-credit sale is an example of this pricing strategy |
| promotinal pricing | these strategies include things like two-hour/50-percent off sale &Buy-one-get-the-second-item-half-price sale |
| price objectives | first step in determining the price for goods and services is to establish THESE |
| peak | is the highest point of growth in the economy |
| socio-culture issue | trends in customer attitudes,lifestyles, opinions, and demographics |
| decrease | during a recession discretionary income can be expected to |
| law of supply | when price goes up the supply produced goes up |
| law of demand | when price goes down the quanitity demanded goes up |
| flexible pricing | policy allows consumers to negotiate prices |
| expansion | phase of the economic cycle when there is increased consumer demand can be expected during this phase of the business cycle |
| equiliibrium | the point where the supply and demand curves intersect |
| Consumers | individuals who purchase products to satisfy their needs and wants |
| scarcity | lack of resources or lack of money to spend on sports and entertainment events is referred to as |
| price fixing | occurs when related businesses conspire to charge high prices |
| Bait and Switch | occurs when a product that is advertised at a great price is “out of stock” when customers want to purchase it, and the salesperson then tries to sell the customer a higher-priced alternative |
| markups | The amount that is added to the cost of an item for sale to cover operating expenses and allow for a profit |
| Price lines | distinct categories of merchandise based upon price, quality, and features |
| business cycle | involve the ups and downs of the economy |
| inflation | occurs when prices for goods and services rise faster than consumer income |
| shoulder periods | Economic periods of moderate demand |
| operating expenses | the costs associated with running a business |
| loss-leader | prices may be used when a company is willing to take a loss on the reduced prices of selected items in order to create more customer traffic |
