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Marketing
Chapter 12
| Term | Definition |
|---|---|
| Bait Pricing | tries to get consumers into a store through false or misleading advertisement and then uses high-pressure selling to persuade consumers to buy more expensive products instead |
| Base Price | the price level at which companies wish to sell the goods or services |
| Basing-Point Pricing | charging freight from a base point, regardless of the city from which the goods are shipped |
| Cash Discount | a price reduction offered to consumers in return for prompt payment of a bill |
| Cumulative Quantity Discount | deduction from the list price that applies to the total purchases made during a specific time period |
| Deceptive Pricing Promoting | a price or price saving that is not actually available |
| Flexible Pricing (Variable Pricing) | different customers may receive different prices for the same products (selling cars) |
| FOB Origin Pricing | the buyer absorbs the freight costs from the shipping point, farther customers pay more |
| Freight Absorption Pricing | the seller pays all or part of the actual freight charges |
| Trade Discount (Functional) | a discount to wholesalers and retailers for performing functions (setting up retail displays) |
| Loss-Leader Pricing | a product is sold near or even below cost in hopes that customers will buy other items once in the store |
| Market Share | companies product sales as a percentage of total sales for that industry |
| Noncumulative Quantity | a deduction from list price that applies to a single order during a certain time period |
| Odd-Even Pricing (Psychological) | odd priced items are bargains and even priced items are quality |
| Penetration Pricing | a relatively low price for a product |
| Predatory Pricing | a very low price for a product in hopes to driving competitors out of business |
| Price | that which is given up in an exchange to acquire a good or service |
| Price Bundling | marketing two or more products in a single package (hotel room and airline seats) |
| Price Fixing | agreement between two or more companies on the price they will charge for a product, illegal |
| Price Lining | offering a product line with several items at specific price points (balls for $2, $5, and $7) |
| Price Skimming | a high price with heavy promotion |
| Price Strategy | basic, long-term agreement that establishes the initial price for a product and the direction for price movements over the products life cycle |
| Profit | revenue-expenses |
| Quantity Discount | unit price reduction offered to buyers buying either in multiple units or at more than a specified dollar amount |
| Resale Price Maintenance | attempts by a producer to control a store's retail price for a product |
| Revenue | price charged to customers times the number of units sold |
| Seasonal Discount | price reduction for buying products out of season |
| Single-Price Tactic | offering all goods at the same price (Netflix) |
| Status Quo Pricing | meeting the prices of competitors |
| Two-Part Pricing | charging two separate prices for one product (bowling and shoes) |
| Unbundling | reducing the bundle of services that comes with the basic product |
| Uniform Delivered Pricing | the seller pays the freight charges and bills every customer an identical, flat freight charge |
| Value-Based Pricing | setting the price at a level that seems like a good price to customers compared to the competition |
| Zone Pricing | divides the total market into segments and charges a flat freight rate to customers in the given zone |
| Demand | amount of a product that will be sold in the market at various prices for specified periods |
| Elastic Demand | situation in which consumer demand is sensitive to changes in price |
| Elasticity of Demand | consumer's responses to changes in price |
| Inventory Turnover | measures the number of times a company goes through full stock |
| Markup | dollar amount added to the cost of sales to get to the selling price |
| Price Discrimination | charging different prices for different buyers (movie tickets) |
| Right Price for a Product | Establish pricing goals, Estimate demand, costs, and profits, Choose a price strategy to help determine a base price, Fine-tune the base with pricing tactics |
Created by:
mchute
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