Shared Flashcard Set

Details

Retail Management Chpt. 10
Retail Chapter 10
22
Management
Undergraduate 4
10/21/2012

Additional Management Flashcards

 


 

Cards

Term
Price Lining
Definition
a pricing policy that is established to help ustomers make merchandise comparisons and invovles establishing a specified number of price points for each merchandise classification
Term
Trading Up
Definition
when a retailer uses price lining and a salesperson moves a customer from a lower-priced line to a higher one
Term
Trading Down
Definition
when a retailer uses price lining, and a customer initially exposed to higher-priced lines expresses the desire to purchase a lower priced line
Term
Odd Pricing
Definition
is the practice of setting retail prices that end in the digits 5,8,9-- such as 29.95, 49.98, 9.99
Term
Multiple Unit Pricing
Definition
occurs when the price of each unit in a multiple-unit package is less than the price of each unit if it were sold individually
Term
Leader Pricing
Definition
when a high demand item is priced low and is heavily advertised in order to attract customers into the store
Term
Loss Leader
Definition
an extreme form of leader pricing where an item is sold below a retailers cost
Term
High-Low Pricing
Definition
the use of high everyday prices and low leader "specials" on items typically featured in weekly ads
Term
Bait-and-Switch Pricing
Definition
advertising or promoting a product at an unrealistically low price to serve as "bait" and then trying to "switch" the customer to a higher priced product
Term
Markup
Definition
the selling price of the merchandise less its cost, which is equal to gross margin
Term
Markdown
Definition
any reduction in teh price of an item from its intially established price
Term
Target-Return Objective
Definition
a pricing objective that states a specific level of profit, such as percentage of sales or return on capital invested, as an objective
Term
Profit Maximization
Definition
a pricing objective that seeks to obtain as much profit as possible
Term
Skimming
Definition
a pricing objective in which price is initially set high on merchandise to skim the cream of demand before selling at more competitive prices
Term
Penetration
Definition
a pricing objective in which price is set at a low level in order to penetrate the market and establish a loyal customer base
Term
Price Zone
Definition
a range of prices for a particular merchandise line that appeals to customers in a certain market segment
Term
Below-Market Pricing Policy
Definition
a policy that regularly discounts merchandise from the established market price in order to build store traffic and generate high sales and gross margin dollars per square foot of selling space
Term
Customary Pricing
Definition
a policy in which the retailer sets prices for goods and services and seeks to maintain those prices over an extended period of time
Term
Variable Pricing
Definition
a policy that recognizes that differences in demand and cost necessitate that the retailer change prices in a fairly predictable manner
Term
Flexible Pricing
Definition
a policy that encourages offering the same products and quantities to different customers at different prices
Term
One-Price Policy
Definition
a policy that establishes that the retailer will charge all customers the same price for an item
Term
Above-Market Pricing Policy
Definition
a policy where retailers establish high prices because nonprice factors are more important to their target market than price
Supporting users have an ad free experience!