Term
| above-market pricing policy |
|
Definition
| Certain market sectors are receptive to high prices because non-price factors [(merchandise offerings (specialty items, exclusive lines, unusual merch), services provided (develop loyal group of customers), convenient locations, & extended hours of operation (enable merchants to charge higher-than avg)] are more important to them than price. |
|
|
Term
| below-market pricing policy |
|
Definition
| a policy that regularly discounts merchandise from the est market price in order to build store traffic and generate high sales and gross margin dollars per square foot of selling space; Retailers with such a policy rely on a high volume, generated by low prices, to produce satisfactory profits. The growth of the Internet is believed to be forcing retailers to sell retailers to adopt this pricing policy |
|
|
Term
|
Definition
| a retailer sets prices for goods & services & seeks to maintain those prices over an extended period of time |
|
|
Term
|
Definition
| offering the same products & quantities to diff customers at diff prices; often used in situations calling for personal selling. price adjustments can decrease revenues and increase costs & the risk of losing customers |
|
|
Term
|
Definition
| involves the use of high every day prices and low leader "specials" on items typically featured in weekly ads |
|
|
Term
|
Definition
| The practice of setting a low price for a high-demand item and advertising heavily as a means of attracting consumers into a store; items selected should be widely known and bought frequently. It is usually a part of a promotional program designed to increase store traffic. |
|
|
Term
|
Definition
| an extreme form of leader pricing which occurs when an item that is sold below a retailer’s cost |
|
|
Term
|
Definition
| Used when differences in demand and cost force the retailer to change prices in a fairly predictable manner. |
|
|
Term
|
Definition
the difference between the selling price and the cost of merchandise, which is equivalent to gross margin. intended to cover all operating expenses incurred in the sale of the product and provide the retailer with a profit. A retailer can sometimes sell a product without a _____ high enough to cover the cost of merchandise in order to generate traffic or build sales volume. It is calculated by the following basic equation:
SP = C + M |
|
|
Term
|
Definition
| a reduction in the price of an item taken in order to stimulate sales; often the result of 4 basic errors- buying errors, pricing errors, merchandising errors, & promotion errors |
|
|
Term
|
Definition
| Occurs when the price of each unit in a multiple-unit package is less than the price of each unit if it were sold individually. This is used by retailers to encourage additional sales and to increase profits. |
|
|
Term
|
Definition
| The practice of setting retail prices that end in the digits 5, 8, or 9. Retailers believe that consumers perceive these odd prices as substantially lower. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| seeks to est a loyal customer base before eventually raising its prices |
|
|
Term
|
Definition
|
|
Term
|
Definition
| tries to sell at the highest price possible before settling on a more competitive level |
|
|
