| A | B |
|---|
| price | The value in money placed on a good or service |
| return on investment | A calculation that is used to determine the relative profitability of a product |
| market share | A company’s percentage of the total sales volume generated by all companies that compete in a given market |
| market position | The relative standing a competitor has in a given market in comparison to its other competitors |
| break-even point | sales revenue equals the costs and expenses of making and distributing a product |
| demand elasticity | The degree to which demand for a product is affected by its price |
| price fixing | competitors agree on certain price ranges within which they set their own prices |
| price discrimination | When a firm charges different prices to similar customers in similar situations |
| unit pricing | A pricing method that allows consumers to compare prices in relation to a standard unit or measure |
| loss leader | An item priced at or below cost to draw customers into a store |
| markup | The difference between an item’s cost and sale price |
| one-price policy | A policy in which all customers are charged the same prices |
| flexible-price policy | A policy in which customers pay different prices for the same type or amount of merchandise |
| skimming pricing | A pricing policy that sets a very high price for a new product |
| penetration pricing | Setting the price for a new product very low to encourage as many as possible to buy the product |
| gross profit | The difference between sales revenue and the cost of goods |
