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Definition
| Point at which the additional revenue gained by increasing the price of a product equals the increase in total costs. |
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| Pricing strategy emphasizing benefits a product provides in comparison to the price and quality levels of competing offerings |
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| modified breakeven analysis |
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Definition
| Pricing technique that evaluates consumer demand by comparing the quantities that a firm must sell at a variety of prices in order to cover total cost with estimates of expected sales at those prices. |
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Definition
| In pricing strategy, the traditional amounts that customers expect to pay for certain goods or services. |
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Definition
| Pricing technique that determines the number of products that must be sold at a specified price in order to generate sufficient revenue to cover total cost |
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| Federal legislation prohibiting price discrimination that is not based on a cost differential; this law also prohibits selling at an unreasonably low price to eliminate competition |
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Definition
| Short-run or long-run pricing practice intended to achieve a specified return on either sales or investment |
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Definition
| Pricing strategies designed to maximize revenues in situations such as air fares and theater tickets where costs are fixed |
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Definition
| Exchange value of a good or service |
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Definition
| Statutes enacted in most states that permit manufacturers to stipulate minimum retail prices for their products. |
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Term
| Profit Impact of Market Strategies (PIMS) Project |
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Definition
| Major research study that discovered a strong positive relationship between a firm's market share and its return on investment |
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Definition
| State law requiring sellers to maintain minimum prices for comparable merchandise |
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Definition
| Measure of the responsiveness of purchasers and suppliers to a change in price |
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