Term
|
Definition
| the charging of different prices to maximize revenue for a set amount of capacity at any given time |
|
|
Term
|
Definition
| setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product |
|
|
Term
|
Definition
| setting a low initial price on a new product to appeal immediately to the mass market |
|
|
Term
|
Definition
| setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it |
|
|
Term
|
Definition
| setting the price of a line of products at a number of different specific pricing points |
|
|
Term
|
Definition
| setting prices a few dollars or cents under an even number |
|
|
Term
|
Definition
| 1) estimating the price that ultimate consumers would be willing to pay for a product...2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then...3) deliberately adjusting the composition and features of the product to achieve the target price to consumers |
|
|
Term
|
Definition
| the marketing of two or more products in a single package price |
|
|
Term
|
Definition
| adding a fixed percentage to the cost of all items in a specific product class |
|
|
Term
|
Definition
| summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price |
|
|
Term
|
Definition
| a method of pricing based on the learning effect which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles, resulting in possible rapid price reductions |
|
|
Term
|
Definition
| setting an annual target of a specific dollar volume of profit |
|
|
Term
| Target Return-on-Sales Pricing |
|
Definition
| setting a price to achieve a profit that is a specified percentage of the sales volume |
|
|
Term
| Target Return-on-Investment Pricing |
|
Definition
| setting a price to achieve an annual target return-on-investment (ROI) |
|
|
Term
|
Definition
| setting a price that is deictated by tradition, a standardized channel of distribution, or other competitive factors |
|
|
Term
| Above-, At-, or Below-Market Pricing |
|
Definition
| setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark |
|
|
Term
|
Definition
| deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well |
|
|
Term
|
Definition
| setting one price for all buyers of a product or service (also called fixed pricing) |
|
|
Term
|
Definition
| setting different prices for products and services depending on individual buyers and purchase situations (also called dynamic pricing) |
|
|
Term
|
Definition
| setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item |
|
|
Term
|
Definition
| successive price cutting by competitors to increase or maintain their unit sales or market share |
|
|
Term
|
Definition
| reductions in unit costs for a larger order |
|
|
Term
|
Definition
| cash payments or extra amount of "free goods" awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product |
|
|
Term
| Everyday Low Pricing (EDLP) |
|
Definition
| the practice of replacing promotional allowances with lower manufacturer list prices |
|
|
Term
|
Definition
| the "free on board" price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur (seller's factory or warehouse) |
|
|
Term
| Uniform Delivered Pricing |
|
Definition
| the price that the seller quotes includes all transportation costs |
|
|
Term
|
Definition
| selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer |
|
|
Term
|
Definition
| a conspiracy among firms to set prices for a product |
|
|
Term
|
Definition
| the practice of charging different prices to different buyers for goods of like grade and quality |
|
|
Term
|
Definition
| the practice of charging a very low price for a product with the intent of driving competitors out of business |
|
|
