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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Definition
| A deceptive practice of luring customers into the store with a very low advertised price on an item only to aggressively pressure them into purchasing a higher priced item |
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Definition
| Tactic of offeringa 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
| A strategy that involves pricing below, at , or above competitors' offerings |
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Term
| cost-based pricing method |
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Definition
| A pricing strategy that involves first determining the costs of producing or providing a product and then adding a fixed amount above that total to arrive at the selling price |
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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 |
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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 |
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Definition
| A strategy companies use to emphasize the continuity of the retail prices at a level somewhere between the regular nonsale price and the deep-discount sales prices their competitors may offer |
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Term
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Definition
| refers to the drop in unit cost as the accumulated volume sold increases; as sales continue to grow, the costs continue to drop allowing even further reductions in the price |
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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 prices, 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 more 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 buuld store traffic by aggressively pricing and advertising a regularly purchased item, often prices at or just above a store's price |
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Term
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Definition
| A written agreement under which the owner of an item or property use for a specified period of time in exchange for a fee |
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Term
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Definition
| Loss leaser 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 the 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 purchases in a single order |
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Term
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Definition
| Prices that end in odd numbers |
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Term
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Definition
| A firm's practice of setting a very low price for one or more of its products with the intent to drive its competition out of business |
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Term
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Definition
| Consumer pricing tactic of selling more than one product for a single lower price than what the items would cost if purchased by themselves |
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Term
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Definition
| The practice of selling the same product to different resellers or to the ultimate consumer at different prices |
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Term
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Definition
| The practice of colluding with other firms to control prices |
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Definition
| Consumer market pricing tactic of establishing a price floor and price ceiling for an entire line of similar products and then setting a few other price points in between to represent distinct difference in quality |
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Term
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Definition
| A strategy of selling a new product or service at a high price that innovators and early adapters are willing to pay in order to obtain it |
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Term
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Definition
| Short-term methods in contrast to long term pricing strategies used to focus on company objectives, cost, customers, competition, or channel members |
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Term
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Definition
| pricing tactic of offering a reduced price according to the amount purchased |
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Term
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Definition
| A consumer discount in which a portion of the purchase price is returned to the buyer in cash |
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Term
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Definition
| The price against which buyers compare the actual selling price of the product and the facilitates their evaluation process |
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Term
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Definition
| Pricing tactic of offering an additional reduction as an incentive to retailers to order merchandise in advance of the normal buying season |
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Term
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Definition
| The most common implementation of quantity discount at the consumer level |
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Term
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Definition
| fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products |
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Term
| Uniform Delivered Pricing |
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Definition
| the shipper charges one rate, no matter where the buyer is loated |
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Term
| Value-Based Pricing Method |
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Definition
| A pricing strategy that involves first determining the perceived value of the product from the customer's point of view and then pricing accordingly |
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Term
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Definition
| Occurs when parties at different levels of the same marketing channel collude to control the prices passed on to consumers |
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Term
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Definition
| the shippers sets different prices depending on a geographical division of the delivery areas |
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