Shared Flashcard Set

Details

Intro to Marketing
Pricing Fundamentals - 12
12
Marketing
Undergraduate 3
06/22/2010

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Cards

Term
internal reference price
Definition
price developed in buyer's mind through experience with the product
Term
external reference price
Definition
comparison price provided by others
Term
trade discount
Definition
(funcitonal) reduction off list price to an intermediary for performing certain functions
Term
cumulative discounts
Definition
quantity discounts aggregated over a stated period
Term
noncumulative discounts
Definition
one-time reductions in price based on specific factors
Term
allowance
Definition
a concession in price to achieve a desired goal
Term
FOB factory
Definition
price of merchandise at the factory, before shipment
Term
FOB destination
Definition
price indicating the producer is absorbing shipping costs
Term
zone pricing
Definition
pricing based on trans. costs within major geographic zones
Term
base-point pricing
Definition
geographic pricing combining factory price and freight charges from the base point nearest the buyer
Term
freight absorption pricing
Definition
absorption of all or part of actual freight costs by the seller
Term
transfer pricing
Definition
prices charged in sales between an org.'s units
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