Term
demand for product class, product, brand
(pricing constraint) |
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Definition
based on the number of potential buyers for a product class(high def TV's), product (flat panel display), and brand (Panasonic)
the higher the demand for the product class the higher the price can be set |
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the newer, the higher the price can be (usually).
initial high price because of patents |
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Term
| cost of producing and marketing the product |
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Definition
| price must cover the cost of producing and marketing the product so it may have to be higher than a firms wants because it if doesn't cover the costs the product will fail. |
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Definition
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Definition
when firms get together and set prices
illegal under sherman act
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Definition
| when two or more competitor firms implicitly or explicitly set prices |
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Definition
controlling agreements between independent buyers and sellers (manufact. and a retailer)
sellers are not allowed to sell products below minimum retail price. |
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charging different prices to dif customers for products of similar grade and quality.
not always illegal...only if it lessens competition or creates a monopoly |
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Term
deceptive pricing
bait and switch |
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Definition
misleads customers
bait and switch: low price for a good, but then not have it in stock or sales people degrade the product so customers buy a similar full priced item |
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Definition
| very low pricing to drive competition out |
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