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AR Marketing Unit 7
Pricing Strategies
| Question | Answer |
|---|---|
| Discounts | reductions in a price given to the customer in exchange for performing certain marketing activities or accepting something other than what would normally be expected in the exchange; may also be referred to as allowances |
| Flexible pricing | allows customers to negotiate price within a price range |
| Gross profit | net sales minus the cost of goods and services sold |
| Markdown | a reduction from the original selling price |
| Markup | an amount added to the cost of a product to determine the selling price |
| Market share | the portion of the total market potential that each company expects in relation to its competitors |
| Net profit | the difference between the selling price and all costs and operating expenses associated with the product sold |
| Penetration price | a very low price designed to increase the quantity sold of a product by emphasizing the value |
| Price | the actual amount customers pay and the methods of increasing the value of the product to the customers |
| Price skimming | is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time |
| Quantity discount | incentive offered by a seller to a buyer for purchasing or ordering greater than usual quantity of goods or materials, to be delivered at one time |
| Sales tax | a tax based on the cost of the item purchased and collected directly from the buyer |
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grizzlybusiness
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