| A | B |
|---|
| Bait and Switch Advertising | Promoting a low-priced item to attract customers to whom the business then tries to sell a higher priced item. |
| Business Cycles | Periods of expansion and contraction in economic activities |
| Capital | Assets of a business |
| Cash Flow | The movement of funds into and out of a business; determines the aount of cash the business has to work with at any given time |
| Costs | The expenses involved with manufacturing, promoting, and distributing a product |
| Elastic Demand | A form of demand for products in which changes in price correspond to changes in demand |
| Fixed costs | Business costs that are not affected by changes in sales volume |
| Growth stage | The product life cycle stage in which sales rise rapidly |
| Inelastic demand | A form of demand in which changes in price do not affect demand |
| Introductory stage | The product life cycle stage when the product first appears in the marketplace |
| Law of supply and demand | Economic principle which states that the supply of good or service will increase when demand is great and decrease when demand is low |
| Market price | Actual price that prevails in a market at any particular moment |
| Market share | An organization's portion of the total industry sales in a specific market |
| Mark-up | The difference between the cost of a product and its selling price |
| Maturity stage | The product life cycle stage in which sales peak and then increase at a slower rate or start to decline |
| Monopolistic competition | A type of market structure in which a lot of businesses sell similar products that have only a few differences |
| Obsolescence | The state of being outmoded or unfashionable |
| Oligopoly | A market structure in which there are relatively few sellers, and industry leaders usually determine prices |
| Operating expenses | All of the expenses involved in running a business |
| Price discrimination | An illegal activity in which a business charges different customers different prices for similar amounts and types of products |
| Price fixing | Illegal business agreement in which businesses agree on prices of their goods or services, resulting in little choice for the consumer |
| Pricing objectives | Goals a company hopes to accomplish through its pricing strategies |
| Product life cycle | The stages through which goods and services move from the time they are introduced on the market until they are taken off the market |
| Product mix | The particular assortment of goods and services that a business offers in order to meet the needs of its market(s) and its company goals |
| Profit | The income left once all expenses are paid |
| Profit maximization | A profit-oriented pricing objective intended to give the firm the most possible profit |
| Profit-oriented pricing | A category of pricing objectives that focus on profit for the business |
| Pure competition | A market structure in which there are many businesses selling a lot of identical products for about the same price to many buyers |
| Pure monopoly | A condition in which a market is controlled by one suppliers, and there are no substitute goods or services readily available |
| Quality | The degree of excellence of a ood or service - how good it is |
| Return on investment | A profit-oriented pricing objective in which the business bases the amount of profit it wants to earn on the amount of its capital investment |
| Return on sales | A profit-oriented pricing objective in which the business bases the amount of profit it wants to earn on the amount of its sales; often called target return |
| Sales-oriented pricing | A category of pricing objectives that focus on increasing total amount of income from sales |
| Sales volume | The amount of a firm's sales; usually expressed in dollars |
| Selling price | The amount a seller charges the purchaser for a good or service |
| Target market | The particular group of customers a business seeks to attract |
| Target return | See return on sales |
| Total costs | All of a business's costs, both fixed and variable |
| Unit pricing | A pricing technique in which consumers are given the price per unit (pound, ounce, etc.) for products |
| Variable costs | Business costs that change according to changes in sales volume |
