| A | B |
|---|
| price | the value placed on goods and services being exchanged |
| a la carte | prices are set for each individual menu item |
| prix fix | offers several courses for one set price |
| promotional pricing | used to generate sales during slow periods |
| psychological pricing | many consumers link price to quality |
| market-penetration pricing | set prices at or below cost just to enter a market and quickly gain market share |
| breakeven pricing | set prices at a level that will generate just enough revenue to cover all costs and expenses |
| cost-based pricing | markups set prices a certain percentage above the product's acquisition cost |
| cost-plus pricing | adds a desired profit to the acquisition cost |
| discounting | rewards customers for booking early, buying offseason, or buying in volume |
| price lining | selling related products at specific price points |
| bundle pricing | selling several items as part of a package for one price |
| loss-leader pricing | pricing an item at or below cost to draw customers or capture their attention |
| yield management | pricing items at different prices to maximize revenue when capacity is limited |
| supply | the quantity of goods that producers provide at various prices |
| demand | the quantity of goods that consumers are willing to buy at various prices |
| inelastic demand | when demand is NOT affected by changes in price |
| introduction | prices are set high to cover development costs |
| growth stage | prices are lowered to attract new customers |
| maturity stage | prices are lowered to fight off competition |
| decline stage | prices are lowered to liquidate inventory |
