| A | B |
|---|
| bait and switch | 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 amount of cash the business has to work with at any given time |
| costs | the expenses involved with manufacturing, promoting and distributing a product |
| decline stage | the product life cycle stage in which sales and profits fall rapidly |
| 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 demandinwhich 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 & demand | economic principle which states that the supply of a good or service will increase when demand in 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 |
| markup | 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 |
| 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 markets 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 supplier and there are no substitute goods or services readily available |
| quality | the degree of excellence of a good 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 volume | the amount of a firm's sales, usually expressed in dollars |
| sales-oriented pricing | a category of pricing objectives that focus on increasing total amount of income from sales |
| selling price | the amount a seller charges the purchaser for a good or a service |
| target market | the particular group of customers a business seeks to attract |
| variable costs | business costs that change according to changes in sales volume |
| 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 for products |
