Term
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Definition
| tactic of offering a price reduction to channel members if they agree to feature the manufacturer's product in their advertising and promotional efforts |
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Term
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Definition
| a deceptive practice of luring customers into the store with a very low advertised price on an item (bait) only to aggressively pressure them into purchasing a higher priced model (switch) |
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Definition
| tactic of offering a reduction in the invoice cost if the buyer pays the invoice prior to the end of the discount period |
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Term
| competitor-based pricing method |
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Definition
| an approach that attempts to reflect how the firm wants consumers to interpret its products relative to the competitors offerings. For example, setting a price close to a competitors price signals to consumers that the product is similar, whereas setting the price much higher signals greater features, better quality, or some other valued benefit |
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Term
| cost-based pricing method |
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Definition
| an approach that determines the final price to charge by starting with the cost, without recognizing the role that consumers or competitors prices play in the marketplace |
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Term
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Definition
| a value-based method for setting prices that determines the total cost of owning the product over its useful life |
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Term
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Definition
| provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount |
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Term
| cumulative quantity discount |
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Definition
| pricing tactic that offers a discount based on the amount purchased over a specified period and usually involves several transactions: encourages resellers to maintain their current supplier because the cost to switch must include the loss of the discount |
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Term
| everyday low pricing (EDLP) |
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Definition
| a strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep discount sale prices their competitors may offer |
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Term
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Definition
| a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases |
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Term
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Definition
| occurs when competitors that produce and sell competing products collude, or work together, to control price, effectively taking price out of the decision process for consumers |
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Term
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Definition
| represents an estimate of how much move (or less) consumers are willing to pay for a product relative to other comparable products |
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Term
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Definition
| consumer pricing tactic that attempts to build store traffic by aggressively pricing and advertising a regularly purchased item, often priced at or just above the store's cost |
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Term
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Definition
| a written agreement under which the owner of an item or property allows its use for a specified period of time in exchange for a free |
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Term
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Definition
| loss leader pricing takes the tactic of leader pricing one step further by lowering the price below the store's cost |
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Term
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Definition
| reductions retailers take on the initial selling price of the product or service |
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Term
| market penetration strategy |
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Definition
| a growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers |
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Term
| noncumulative quantity discount |
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Definition
| pricing tactic that offers a discount based on only the amount purchased in a single order; provides the buyer with an incentive to purchase more merchandise immediately |
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