| 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 |
| 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 |
| 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 |
| 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 th |
| 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 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 amount and types of products |
| Price fixing | Illegal business agreement in which businesses agree on prices of their goods or services or services, resulting in little choice for the consumer |
| Pricing objectives | Goals a company hopes to accomplish through its pricing strategies |
| Business cycles | Periods of expansion and contraction in economic activities |
