is the exchange of a product or service in the marketplace.
is the volume or price at which a company's revenue for a product exactly equals its fixed cost.
is the difference between a product's price and its variable cost.
establishes a price based on the cost to manufacture a product or deliver a service.
adds a fixed amount to the cost of each product or service sufficient to earn a desired profit.
Demand curve (or demand schedule)
charts the projected sales for a product or service for any price customers are willing to pay.
refers to the situation in which price elasticity is greater than one or when demand is highly responsive to a change in price.
are those consumers perceive as offering good value and meeting personal and social norms.
Fixed costs (or overhead)
are costs that are incurred regardless of any production or sales.
refers to the situation in which price elasticity is less than one or when demand is relatively nonresponsive to a change in price.
refers to the type of marketplace situation the company faces: monopoly, oligopoly, monopolistic competition, or pure competition.
is a percentage or fixed amount added to the cost of a product or service.
refers to a market composed of firms with somewhat differentiated products and limited pricing power sufficient to influence the price of their own products to a degree.
refers to a market composed of a single firm with pricing power sufficent to set the marketplace price for all products or services.
refers to a market composed of a small group of firms that share pricing power sufficient to set the marketplace price for their products or services.
is the measure of percentage change in quantity demanded for a product, relative to a percentage chage in its price.
is the ratio between the rpice of a product and its perceived quality
is the ability of a firm to establish a higher pcie than its competitors without losing significant market share.
is the difference between the rpice of a product and its total cost per unit
refers to a market composed of a large number of firms that together lack sufficient pricing power to influence the market price for their products.
is the sum of fixed and variable costs.
are costs directly attributable to the production of a product or the delivery of a service.
are considerations (such as legal requirements or bidding practices) that must be taken into account when establishing a price for a product or service.
are laws designed to prevent predatory pricing.
is a catchall phrase for federal legislation meant to prohibit anticompetitive actions on the part of manufactuers, wholesalers, or resellers.
occurs when a firm advertises a low price on a deserable product but, in an attempt to trade customers up to more expensive items, it dos not make a good faith effort to carry sufficient quantities of that product.
involves supppliers in a bid process that receive identical RFQs and then return quotes in secret to the buyer.
Currency exchange rates
are variable rates that specify the price of one currency in terms of the priceof another.
occurs when a price is meant to intentionally mislead or deceive customers.
involves the sale of items below cost to drive floor traffic.
is the result of a back-and-forth discussion between a buyer and seller regarding the final price of a product or service.
is a practive that sets prices at fractional numbers, instead of whole ones.
occurs when a firm sells its products at a low price to drive competitors out of the market.
occurs when two or more items are priced at a single, combined price instead of individually.
occurs when a firm injures competition by charging different prices to different members of its distribution channel.
occurs when two or more companies discuss prices in an effort to raise the market prie for their products.
is the strategy of using price as a promotional tool to drive customer awarness and sales.
Request for quote (RFQ)
is a document a buyer sends to a potential supplier that outlines the criteria for the goods or service to be purchased.
are limits on the amount of a product that can be imported into a country.
is a supplier's response to an RFQ from a potential customer.
Sticker price (MSRP[manufactuer's suggested retail price])
is the quoted of official price for a product.
is a schedule of duties (or fees) applied to goods and services from foreign countries.
identifies what a business will charge for its products and services.
are markets in which buyers and sellers engage in a process of offer and counteroffer until a price acceptable to both parties is reached.
is a percentage or fixed amount off the quoted price of an itme and is given when a customer pays in cash.
are the amount one online entity charges another online entity for passing along a Web user who clicks an ad or link.
is the ability of consumers to understand a product's actual cost.
Dynamic pricing (or "smart" pricing")
is the practice of varing prices basedon marketplace conditions
is an economic model that presumes costs will decline as production volume increases.
is a market in which a buyer states what he or she iseeking to purchased and sellers respond in kindwith bids (or prices)
is the additional cost to produce or sell one more product or service.
is the process of setting prices for products or services sold over the Internet or through an electronic medium.
is price that is set low to maximize volume and market share.
is the price all products in a product line must be priced below.
is the price above which all products in a product line must be priced.
Price lining (or tiered pricing, versioning)
is a strategy usedto create different prices for different, but related, products or services.
occur when businesses cut prices to take sales from competitors.
are goals that keep marketing actions in alignment with overall business objectives.
is a discount per item purchaed that is given to a customes buying a larger quantity of product.
is a cash payment made back to a customer who has purchaed his or her products at full price.
is a market in which a buyer states what he or she is seeking to purchase, as well as th price he or she is willing to pay.
is aprice that iset high ino rder to maximize revenue and profit.
(also called offline pricing) refer to prices established for products or services sold through traditional sales channels like grocery stores, mass merchandisers, or other "brick and mortar" businesses.
is the cash value given to a customer when he or she offers his or her own product in trade toward a new purchase.