Term
| skimming pricing strategy |
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Definition
| Pricing strategy involving the use of a high price relative to competitive offerings |
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| Intentionally setting a relatively high price compared with the prices of competing products; also known as skimming pricing |
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| Pricing practice in which on e firm raises prices and then waits to see if others follow suit |
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| penetration pricing strategy |
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| Pricing strategy involving the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance |
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| everyday low pricing (EDLP) |
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Definition
| Pricing strategy of continuously offering low prices rather than relying on such short-term price cuts as cents-off coupons, rebates, and special sales |
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| competitive pricing strategy |
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Definition
| Pricing strategy designed to deemphasize price as a competitive variable by pricing a good or service at the level of comparable offerings |
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| An opening price below that of the competition, usually on a high-quality, private-label item |
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| Established price normally quoted to potential buyers |
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| Price a consumer or marketing intermediary actually pays for a product after subtracting any discounts, allowances, or rebates from the list price |
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| Price reduction offered to a consumer, business user, or marketing intermediary in return for prompt payment of a bill |
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| Payment to a channel member or buyer for performing marketing functions; also known as a functional discount |
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| Price reduction granted for a large-volumen purchase |
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Term
| cumulative quantity discount |
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Definition
| Price discount determined by amounts of purchases over stated time periods |
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Term
| noncumulative quantity discount |
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Definition
| Price reduction granted on a one-time-only basis |
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| Specified deduction from list price, including a trade-in or promotional allowance |
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| Credit allowance given for a used item when a customer purchases a new item |
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| Promotional incentive in which the manufacturer agrees to pay the reseller a certain amount to cover the costs of special promotional displays or extensive advertising |
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Term
| minimum advertised pricing (MAP) |
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Definition
| Fees paid to retailers who agree not to advertise products below set prices |
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Definition
| Refund of a portion of the purchase price, usually granted by the product's manufacturer |
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Term
| FOB (Free on board) plant (FOB origin) |
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Definition
| Price quotation that does not include shipping charges |
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| FOB origin-freight allowed (freight absorbed) |
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Definition
| Price quotation system that allows the buyer to deduct shipping expenses from the cost of purchases |
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Term
| uniform-delivered pricing |
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Definition
| Pricing system for handling transportation costs under which all buyers are quoted the same price, including transportation expenses. Sometimes known as postage-stamp pricing |
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Definition
| System for handling transportation costs under which all buyers are quoted the same price, including transportation expenses; also known as uniform-delivered price |
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| Pricing system for handling transportation costs under which the market is divided into geographic regions and a different price is set in each region |
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| System used in some industries during the early 20th century in which the buyer paid the factory price plus freight charges from the basing-point city nearest the buyer |
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| General guideline that reflects marketing objectives and influences specific pricing decisions |
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| Pricing policy based on the belief that certain prices or price ranges make a good or service more appealing than others to buyers |
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Definition
Pricing policy based on the belief that a price ending with an odd number just under a round number is more appealing, for instance, $9.97 rather than $10
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| Pricing policy in which prices are stated in terms of a recognized unit of measurement or a standard numerical count |
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| Pricing policy permitting variable prices for goods and services |
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| Practice of setting a limited number of prices for a selection of merchandise and marketing different product lines at each of these price levels |
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| Pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm's marketing strategy |
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| Product offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices |
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| Variant of loss-leader pricing in which marketers offer prices slightly above to avoid violating minimum-markup regulations and earn a minimal return on promotional sales |
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| Inviting potential suppliers to quote prices on proposed purchases or contracts |
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| Cost assessed when a product is moved from one profit center within a firm to another |
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| Any part of an organization to which revenue and controllable costs can be assigned |
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| Loss of sales of an existing product due to competition from a new product in the same line |
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| Software program that allows online shoppers to compare prices of a particular product offered by several online retailers |
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| Offering two or more complementary products and selling them for s single price |
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