Term
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Definition
| fixed cost / unit produced. Fixed costs of production are spread over the total # of units produced. |
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Definition
| illegal. special advertising price baits customers into store with intention of switching them to a higher priced product. illegal to not have the advertised product |
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Definition
| pricing tactic. customers pay shipping charges. set geographic location. FOB. |
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Term
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Definition
| determines the # of units a firm must produce and sell to cover firm's total expenses. Formula=Total fixed costs/fixed cost contribution=break-even |
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Definition
| price-setting method based on estimates of demand at different prices |
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Definition
| changes in price have effects on amount demand |
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Definition
| B2B. Pricing tactic. selling price includes the cost of loading and transporting product to said place. Customer picks up products from location. |
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Term
| Freight absorption pricing |
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Definition
| tactic where the price of product is calculated to include shipping |
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Term
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Definition
| changes in price=no effect on amount demanded. oil, cofee beans for a coffee chop. consumer takes that cost on. |
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Term
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Definition
| costs of production that dont change w/ # of units produced |
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Term
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Definition
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Term
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Definition
| retail or manufactorer pricing policy. sets prices low or below cost on product or product line to attract consumers to store. Hope to make up lost products on other products |
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Term
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Definition
| increase in total cost resulting from the producing 1 additional unit of a product |
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Term
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Definition
| pricing strategy. firm introduces a new product at low price to encourage more consumers to purchase it |
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Term
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Definition
| illegal. company sets a low price for purpose of driving competitors out of biz. |
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Term
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Definition
| that which is given up in exchange to aquire a good or service |
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Term
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Definition
-flood of new products
-increased avail. of bargain-priced private and generic brands
-price cutting strategies
-Internet
-recession |
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Term
| price elasticity of demand |
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Definition
% change in unit sales resulting from % change in price.
(>1.0) = more price inelastic demand |
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Term
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Definition
| selling two or more goods as a single pckg for 1 price |
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Term
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Definition
| collaboration of 2 plus firms in setting prices, usually to keep prices high. i.e. airlines |
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Term
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Definition
| pricing strategy. one firm first sets its price and other firms in industry follow w/ same price or very familiar. status quo. |
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Term
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Definition
| discount of charging reduced prices for purchases of larger quantities of product |
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Term
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Definition
| practice of setting limited # of diff. specific prices, price points, for items placed on product line |
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Term
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Definition
| premium price that firm charges for new highly desirable product. goal=gain sales from the top of the market or consumers who dont mind paying the extra amount to get the perceived brand. i.e. iphone |
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Term
| situations when price skimming is successful |
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Definition
-inelastic demand
-unique advantages/superior
-legal protection of product
-tech. breakthru
-blocked entry to competitors |
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Term
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Definition
| total of the fixed costs and thvariable sots for a set # of units produced |
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Term
| trade or functional discounts |
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Definition
| discount off listed POP to memebers of the channel intermediaries who perform various marketing functions |
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Term
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Definition
| state laws that prohibit suppliers from selling products below cost to protect small bizs |
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Term
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Definition
| a firm sets prices that provide ultimate value to customer |
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Term
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Definition
| pricing product low for limited time. lower risk to consumer |
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Term
| uniform delieverd pricing |
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Definition
| tactic. firm adds a shipping price to price for all customers. disregards location. |
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Term
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Definition
| cost of producton. that are tied to and vary depending on the # of units produced |
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Term
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Definition
| charging diff. prices to diff. consumers in order to mng capacity while max. rev. |
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