Term
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Definition
Strategic Planning
Strategic Analysis |
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Term
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Definition
Core Competency
Outsourcing
Sustainable Competitive Advantage |
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Term
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Definition
| The primary areas that an organization is excellent at in making decisions |
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Term
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Definition
Pappas - Pappas are good in services-good in training-not at mcdonalds counter-pappas spend a lot money in training
IBM
DuPont |
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Term
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Definition
IBM have maintenance which they make more money on
Mainframe computers>consulting services>cloud software |
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Term
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Definition
Transferring a business function to
an external provider
(cost saving, focus on core business, improve quality) |
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Term
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Definition
Call centers
Supply chain function-growing because practice is going global
Data storage - done through cloud computing |
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Term
| SUSTAINABLE COMPETITIVE ADVANTAGE |
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Definition
| Maintaining a Competitive Advantage Over a Long Period of Time |
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Term
| SUSTAINABLE COMPETITIVE ADVANTAGE EXAMPLES |
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Definition
Digging a moat strategy
Patents/copyrights
Brand equity
Low cost organizations |
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Term
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Definition
| obtain strong competitive advantage, fend off existing and new challenges, isolate firm from competition, maintain a low cost structure |
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Term
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Definition
| Patents and copyrights are monopoly awards given by the government for new technology and innovations |
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Term
| patent/copyright examples |
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Definition
| drug patent, song/movie/book, apps, dead moneymaker royalties (MJ), they are monopoly awards |
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Term
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Definition
| the goodwill of a brand, Coca cola, intel, google |
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Term
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Definition
Business Models
Changing Business Models
Cash Flow Business Models
Threatened Business Models |
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Term
| Traditional business model |
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Definition
| many levels of management, focus on command and control |
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Term
| entrepreneurial business model |
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Definition
| few levels of management, focus on recognition and response |
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Term
| focus on recognition and response |
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Definition
| changing buyer needs, changing competition, environmental threats and opportunities |
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Term
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Definition
strengths, weaknessess
products, price, promotion, distribution |
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Term
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Definition
opportunities, threats
competition, changing buyer needs, environmental changes, new technology |
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Term
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Definition
Mistakes can be valuable
The worst mistake is to act as if you do not make mistakes
Question: What did you learn? |
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Term
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Definition
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Term
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Definition
| “Those Who Never Make Mistakes Work For Those of Us Who Do.” |
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Term
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Definition
50 years period of time
Union contract after WW2 which had terrible effect on inventory
Health care cost: most efficient health care possible
down from 8 to 4 car brands |
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Term
| SW airline business model |
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Definition
| granted in TX, 3 airports triangle, hobby almost decommissioned after WW2 |
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Term
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Definition
| customers in charge, key to success is openness, collaborate with customers, what would google do? enormous impact |
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Term
| POTENTIAL CHANGES IN POST OFFICE SERVICE |
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Definition
Rent space in retail stores
Stop home delivery on Saturday
Close small rural post offices
Limit choices to mail packages |
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Term
| threatened business model |
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Definition
| agents and brokers, law firms, post office |
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Term
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Definition
collect card revenue > order product > incur costs
get money first before even making the product |
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Term
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Definition
| makes ads, take payments, tell manufactures to make and ship |
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Term
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Definition
| collect > pay retailer slowly > incur costs |
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Term
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Definition
| collect premium > invest float > incur cost |
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Term
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Definition
Growth Strategies
Marketing Choices
Guerrilla Marketing
Marketing Mix |
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Term
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Definition
| existing products in existing markets |
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Term
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Definition
| new products in existing markets |
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Term
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Definition
| existing products in new markets |
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Term
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Definition
Use more of product
Cross-sell products
Take competitor’s business |
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Term
| Market penetration: Arm and Hammer |
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Definition
new campaign, clean odor of refrigerators, clean drains
Heavy branded names enhance strategies to sell more |
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Term
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Definition
Checking accounts
Credit/Debit cards
Safety deposit boxes
USAA sells 3.5 products per customer, top seller, quick questions very engaging |
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Term
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Definition
| bring out new products, modify existing products, continuous product changes |
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Term
| continuous product changes |
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Definition
| new yearly products, seasonal fashions, new technologies |
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Term
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Definition
| expand geographical market, expand overseas, sell to new markets |
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Term
| market development examples |
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Definition
| pappas expands to chicago - started in 1950s and did not have public stocks, scantrons sold to large hospitals, leveno sells smartphones outside of China, |
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Term
| Blue bell Ice cream intensive growth |
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Definition
market penetration- increase sales of existing products
product development - introduce a new line of diet blue bell
market development - enter oklahoma with blue bell |
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Term
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Definition
| introducing new products which take revenue from existing products, introducing new stores which take revenue from existing stores |
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Term
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Definition
backward integration - control of supply system
forward integration - control of distribution system
horizontal integration - control of competition |
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Term
| backward integration examples |
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Definition
mcdonald's making own hamburger buns
ford operating their own steel mills
kroger operating own milk plant |
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Term
| kroger manufacturing facilities |
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Definition
| dairy plan, bakery, meat plant, carbonated beverages |
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Term
| horizontal integration examples |
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Definition
Ernst and Whinney merging with Arthur Young
Chevron buying gulf oil
Back and Decker merging with Stanley |
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Term
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Definition
| niche markets, multiple revenue streams, market positioning |
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Term
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Definition
concentrated niche- one target market
multiple niches - multiple target markets
big companies do multiple addons |
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Term
| concentrated niches for blue jeans |
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Definition
| not your daughter's jeans, male skinny jeans, long haul jeans |
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Term
| toy niche market using ipads |
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Definition
| crayola iMakers, Griffin toy helicopter, FisherPrice laugh and learn |
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Term
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Definition
GM, Anheuser - Busch Beer, Procter and Gamble detergents
Office depot looking for potential merger, apple, microsoft and google are going into retailing business |
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Term
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Definition
Budweiser, Michelob, Busch
best-known is budweiser because of advertising, Market for cheap people michelob and busch, college kids |
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Term
| Procter and Gamble detergents |
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Definition
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Term
| Harry Potter multiple revenue examples |
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Definition
| many languages, custom designs, multiple revenue strings |
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Term
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Definition
| the perception a buyer has about your product versus your competitor's product |
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Term
| Gerber's positioning statement |
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Definition
| Babies are your business - our only business |
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Term
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Definition
| unconventional marketing intended to get maximum results from minimal resources, most applicable if you're new entrepreneur |
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Term
| guerrilla marketing examples |
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Definition
bauer student organizations "borrowing" tables
mobile taco stands
free publicity |
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Term
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Definition
| Target Market(s) > Product/Service Strategy > distribution strategy, pricing strategy, promotion strategy |
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Term
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Definition
| girl scout cookies, college text books |
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Term
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Definition
price theory and practice
incremental pricing, bases for price decisions, price discounts, special pricing issues |
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Term
| Price theory and practice |
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Definition
price theory(economics) - dominance of pricing
pricing in practice(business) - influence of non-price factors
1. understanding fixed and variable cost 2. demand, inelastic
pricing is important to competition |
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Term
| what shift D to the right? |
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Definition
| all kind of non-price factors |
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Term
| useful concepts for pricing strategy |
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Definition
price elasticity - elastic demand and inelastic demand
cost concepts - fixed cost, variable cost |
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Term
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Definition
using contribution to profit as the criteria for measuring profitability rather than net profit. Contribution to profit = total revenue - variable cost
net profit = total revenue - total cost |
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Term
| conditions favorable for incremental pricing |
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Definition
heavy fixed cost, excess production capacity, price-sensitive niche, isolate from core market
core market for wall street journal is business community |
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Term
| incremental pricing of services by time |
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Definition
| hours in the day- matinee movies, days of the week - weekend hotels, seasons of the year - income tax preparation |
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Term
| bases for price decisions |
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Definition
based on demand of buyer, based on cost of seller, based on competitor prices
what is customers willing to pay |
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Term
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Definition
| new product pricing, perceived value, yield management |
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Term
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Definition
| start out high, somebody comes in then lower the price |
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Term
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Definition
| start at lower level, send signal to competitors |
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Term
| product skimming examples |
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Definition
| intel chips, flat panel TVs, Smart Phones |
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Term
| product penetration examples |
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Definition
| southwest airlines, two-buck chuck wine, vizio TV - being sold at costco |
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Term
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Definition
| rolex, 3M post it notes, business lunches |
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Term
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Definition
| airlines, hotels, utility pricing |
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Term
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Definition
| airline add-on charges, cost plus is an easy way to charge, billable hours, markups |
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Term
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Definition
lawyer sets billable cost at 400 per hour, Boeing has a cost-plus contract with NASA
Star Furniture marks up their furniture 50% above cost |
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Term
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Definition
| airlines, credit cards, telephone services |
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Term
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Definition
| sold only in trader joe's gourmet stores, overproduction of california grapes, produce own grapes at very low cost |
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Term
| Parker Hannifin Pricing Strategy |
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Definition
A products - high volume commodities
B products - more specialized niches
C products - limited competition
D products - no direct competitor |
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Term
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Definition
| cash discount(5% off on cash payments), seasonal discounts(cheaper on certain days), trade discounts(cheaper prices to wholesalers), promotional discounts(weekend specials at supermarkets) |
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Term
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Definition
| pricing choices, psychological pricing, questionable pricing, price stability/competition |
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Term
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Definition
| paying monthly telephone bills, buying canned goods at the store, parking at reliant stadium |
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Term
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Definition
| buying a car, selling a house, garage sale, showrooming |
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Term
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Definition
| 199.95, 99 cents, buy one get one free |
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Term
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Definition
| bait and switch, price gouging, price fixing, price of E-books |
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Term
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Definition
| wholesale model, agency model |
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Term
| wholesale pricing model for selling ebooks |
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Definition
book publisher sets list price at $25
seller buys at $12.50 and sells for $25
amazon.com buys at 12.50 and sells for 9.99 |
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Term
| who wants price competition? |
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Definition
| discount retailers, foreign competitors, firms with low costs, internet sellers |
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Term
| who wants price stability? |
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Definition
| oligopolies, small business, professional services, traditional brokers and agents |
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