click below
click below
Normal Size Small Size show me how
Pricing Vocab
Question | Answer |
---|---|
Price | The formal ratio that indicates the quantities of money goods or services needed to acquire a given quantity of goods or services. |
Market share | The percentage of a market (defined in terms of it either units or revenue) accounted for by a specific entity. |
Market position | Positioning refers to the customer's perceptions of the place a product or brand occupies in a market segment. In some markets, a position is achieved by associating the benefits of a brand with the needs or life style of the segments.More often, positio |
Cost | The money expended to produce and market a product or service. |
Markup | The difference between merchandise cost and the retail price. |
Margin | The difference between the selling price and total unit costs for an item. |
Markdown | The amount of a reduction from the selling price. |
Break Even point | The sales volume at which total revenues are equal to total costs. |
Elasticity | The degree that an economic variable changes in response to a change in another economic variable. |
Price competition | The rivalry among firms seeking to attract customers on the basis of price, rather than by the use of other marketing factors. |
Nonprice Competition | Rivalry based on quality of service, distribution, and promotion that highlights the benefits and features of their products. |
Price fixing | The practice of two or more sellers agreeing on the price to charge for similar products or services. |
Price discrimination | The practice of two or more sellers agreeing on the price to charge for similar products or services. |
Market share | The practice of two or more sellers agreeing on the price to charge for similar products or services. |
Return on Investment | Return on investment( ROI) is one way of considering profits in relation capital invested. |
Cost based pricing | A pricing method in which a fixed sum or a percentage of the total cost is added to the cost of the product to arrive at its selling price. |
Demand based pricing | A pricing method in which a fixed sum or a percentage of the total cost is added to the cost of the product to arrive at its selling price. |
Flexible price policy | A practice of selling at different prices to different customers. This practice could be suspect under the Robinson-Patman Act. |
One price policy | A policy that, at a given time, all customers pay the same price for any given item of merchandise |
Psychological pricing | A method of setting prices intended to have special appeal to consumers. |
Pricing lining | A limited number of predetermined price points at which merchandise will be offered for sale-e.g., $7.95, $10.95, $14.95. |
Promotional Pricing | When prices are reduced for a short period of time during a sales promotion. |
cash discount | Higher than average prices to suggest status and high quality to the customer. |
prestige pricing | Higher than average prices to suggests status and high quality to the customer |
Quality discounts | A reduction in price of volume purchases |
Trade discounts | a discount allowed to a class of customers on a list price before consideration of credit terms.It applies to any allowance granted without reference to the date of payment |
Promotional discounts | An allowance given by vendors to retailers to compensate the latter for money spent in advertising a particular item in local media, or for preferred window and interior display space used for the vendor's product. |
Seasonal Discounts | A special discount to all retailers who place orders for seasonal merchandise well in advance of the normal buying period. |
Skimming Pricing | A method of pricing that attempts to first reach those willing o buy at a high price before marketing to more price-sensitive customers |
Penetration Pricing | A pricing policy that sets a low initial in an attempt to increase market share rapidly. This policy is effective if demand is received to be fairly elastic |