Term
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Definition
| the amount of money that is charged for "something" of value |
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Definition
| setting a specific level of profit as an objective |
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Term
| profit maximization objective |
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Definition
| seeking to get as much profit as possible |
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Term
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Definition
| seeking some level of unit sales, dollar sales, or share of market-without referring to profit |
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Definition
| don't rock the pricing boat objectives, e.g. wanting to stabilize prices, meet competition, avoid competiton |
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Definition
| aggressive action on one or more of the Ps other than price |
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Term
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Definition
| consciously setting prices, instead of letting market forces (or auctions) deciding their prices, most firms set their own prices. |
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Term
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Definition
| policy offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities. |
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Term
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Definition
| policy offering the same product and quantities to different customers and different prices |
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Term
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Definition
| policy trying to sell the top (skim of the cream) of a market-the top of the demand curve-at a high price before aiming at the more price-sensitive customers. |
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Term
| penetration pricing policy |
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Definition
| trying to sell the whole market at one low price. |
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Term
| introductory price dealing |
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Definition
| temporary price cuts to speed new products into a market and get customers to try them |
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Term
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Definition
| the prices final customers or users are normally asked to pay for products |
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Term
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Definition
| reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves |
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Term
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Definition
| discounts offered to encourage customers to buy in larger amounts. |
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Term
| Cumulative quantity discounts |
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Definition
| Apply to purchases over a given period-such as a year- and the discount usually increases as the amount purchased increases. |
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Term
| Noncumulative quantity discounts |
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Definition
| discounts that apply only to individual orders |
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Term
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Definition
| discounts offered to encourage buyers to buy earlier than present demand requires. |
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Term
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Definition
| means that the payment for the face value of the invoice is due immediately. |
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Term
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Definition
| reductions in price to encourage buyers to pay their bills quickly |
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Term
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Definition
| net 30,means the buyer can take a 2 percent discount off of the face value of the invoice if the invoice is paid within 10 days. |
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Term
| trade (functional) discount |
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Definition
| a list price reduction given to channel members for the job they are going to do. |
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Term
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Definition
| a temporary discount from the list price |
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Term
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Definition
| setting a low list price rather than relying on frequent sales, discounts, or allowances. |
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Term
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Definition
| like discounts, are given to final consumers, customers, or channel members for doing something accepting less of something |
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Term
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Definition
| price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally. |
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Term
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Definition
| sometimes called slotting allowances-given to an intermediary to get shelf space for a product |
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Term
| Push money (or prize money) allowances |
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Definition
| sometimes called PMs or spiffs, are given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggresively selling certain items. |
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Term
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Definition
| a price reduction given for used products when similar new products are bought |
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Term
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Definition
| refunds paid to consumers after a purchase |
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Term
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Definition
| free on board, the seller pays the cost of loading the products onto some vehicle |
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Term
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Definition
| making average freight charges to all buyers within specific geographic areas |
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Term
| Uniform delivered pricing |
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Definition
| making an average freight charge to all buyers, used most often when (1) transportation costs are relatively low and (2)the seller wishes to sell in all geographic areas at one price, perhaps a nationally advertised price. |
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Term
| freight-absorbing pricing |
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Definition
| absorbing freight cost so that a firm's delivered price meets that of the nearest competitor. |
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Term
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Definition
| means setting a fair price level for a marketing mix that really give the target market superior customer value |
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Term
| Unfair trade practice acts |
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Definition
| put a lower limit on prices, especially at the wholesale and retail levels. |
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Term
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Definition
| pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market. |
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Term
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Definition
| prices customers are shown to suggest that the prices has been discounted from list |
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Term
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Definition
| amendment which bans "unfair or deceptive acts of commerce" |
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Term
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Definition
| competitors getting together to raise, lower, or stabilize prices-common and relatively easy. But it is also completely illegal in the USA |
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Term
| Robinson-Patman Act (1936) |
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Definition
| makes illegal any price discrimination, which is selling the same products to different buyers at different prices-if it injures competition. |
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