A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.
Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.
value based pricing
uses the buyers perceptions of value, not the sellers cost, as the key to pricing
FOB origin pricing
A price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")
uniform delivered pricing
A price tactic in which the seller pays the actual freight chargers and bills every puchaser an identical, flat freight charge.
A modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone.
freight absorption pricing
a pricing tactic in which the seller absorbs the total cost of transportation
basing point pricing
customers pay shipping charges from set basing - point locations, whether the goods are actually shipped from these points or not
A price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.
Costs that are shared in the manufacturing and marketing of several products in a product line.
delayed quotation pricing
a price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or delivered.
A price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made.