Term
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Definition
| The amount of money that is charged for "something" of value. |
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Term
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Definition
| A specific level of profit as an objective. |
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Term
| Profit Maximization Objective |
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Definition
| An objective to get as much profit as possible. |
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Term
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Definition
| An objective to get some level of unit sales, dollar sales, or share of market-without referring to profit. |
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Term
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Definition
| "Don't rock the pricing boat" objectives. |
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Term
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Definition
| Aggressive action on one or more of the Ps other than price. |
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Term
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Definition
| Consciously set prices aimed at reaching the firm's objectives. |
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Term
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Definition
| Offering the same price to all customers who purchase products under essentially the same conditions & in the same quantities. |
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Term
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Definition
| Offering the same product & quantities to different customers at different prices. |
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Term
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Definition
| Trying to sell the top of the market-the top of the demand curve-at a high price before aiming at more price-sensitive customers. |
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Term
| Penetration Pricing Policy |
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Definition
| Trying to sell the whole market at one low price. |
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Term
| Introductory Price Dealing |
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Definition
| Temporary price cuts to speed new products into a market and get customers to try them. |
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Term
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Definition
| The prices that final customers or users are normally asked to pay for products. |
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Term
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Definition
| Reductions from list price given by a seller to buyers, who either give up some marketing function or provide the function themselves. |
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Term
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Definition
| Discounts offered to encourage customers to buy in larger amounts. |
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Term
| Cumulative Quantity Discounts |
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Definition
| Reductions in price for larger purchases over a given period, such as a year. |
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Term
| Noncumulative Quantity Discounts |
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Definition
| Reductions in price when a customer purchases a larger quantity on an individual order. |
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Term
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Definition
| Discounts offered to encourage buyers to buy earlier than present demand requires. |
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Term
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Definition
| An invoice term meaning that payment for the face value of the invoice is due immediately-also see cash discount. |
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Term
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Definition
| Reductions in the price to encourage buyers to pay their bills quickly. |
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Term
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Definition
| Allows a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days. |
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Term
| Trade (Functional) Discount |
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Definition
| A list price reduction given to channel members for the job they are going to do. |
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Term
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Definition
| A temporary discount from the list price. |
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Term
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Definition
| Setting a low list price rather than relying on frequent sales, discounts, or allowances. |
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Term
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Definition
| Reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something. |
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Term
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Definition
| Price reductions to firms in the channel to encourage them to advertise or otherwise promote the firm's products locally. |
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Term
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Definition
| Allowances given to wholesalers or retailers to get shelf space for a product-sometimes called slotting allowances. |
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Term
| Push Money (or Prize Money) Allowances |
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Definition
| Allowances (sometimes called PMs or spiffs) given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items. |
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Term
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Definition
| A price reduction given for used products when similar new products are bought. |
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Term
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Definition
| Refunds to consumers after a purchase. |
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Term
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Definition
| A transportation term meaning free on board some vehicle at some point. |
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Term
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Definition
| Making an average freight charge to all buyers within specific geographic areas. |
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Term
| Uniform Delivered Pricing |
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Definition
| Making an average freight charge to all buyers. |
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Term
| Freight-Absorption Pricing |
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Definition
| Absorbing freight cost so that a firm's delivered price meets the nearest competitor's. |
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Term
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Definition
| Setting a fair level for a marketing mix that really gives the target market superior customer value. |
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Term
| Unfair Trade Practice Acts |
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Definition
| Put a lower limit on prices, especially at the wholesale and retail levels. |
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Term
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Definition
| Pricing a product sold in a foreign market below the cost of producing it or at a price lower than its domestic market. |
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Term
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Definition
| Misleading prices that customers are shown to suggest that the price they are to pay has been discounted from list. |
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Term
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Definition
| Law that bans unfair or deceptive acts in commerce. |
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Term
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Definition
| Competitors illegally getting together to raise, lower, or stabilize prices. |
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Term
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Definition
| A 1936 law that makes illegal any price discrimination if it injures competition. |
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Term
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Definition
| Injuring competition by selling the same products to different buyers at different prices. |
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