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3.06 pricing defs
| Term | Definition |
|---|---|
| deceptive pricing | false or misleading statement in advertising |
| bait and switch advertising | customers baited by advertising a low price, then customers are switched to a costlier product |
| loss-leader pricing | product sold at a low price to stimulate other profitable sales |
| price discrimination | firm chargers different prices to similar customers in similar situations |
| clayton antitrust act of 1914 | price discrimination as creating unfair competition |
| robinson patman act | a law to strengthen the clayton act, prohibits sellers fro offering one customer one price and another customer a different price |
| price fixing | an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold |
| predatory pricing | the practice of selling a product or service at a very low price, intending to drive competitors out of the marktet |
| dumping | any kind of predatory pricing, especially international trade |
| resale price mantenance | manufacturers try to force retailers to sell their products at a certain price,, if the retailer dropped the price too low, the manufacturer would punish the retailer by withholding merchandise or refusing discount |
| pricing decisions | mus consider transportation, production and selling cost |
| price | what customer pays for the product |
| cost | expense that a business has for the product |