Chapter 25
Order by
21 terms
Terms | Definitions |
|---|---|
 price | the value of money placed on a good or service |
| market position | Marketers' relative standing in relation to their competitors. |
| return on investment | calculation that is used to determine the relative profitability of a product |
| break-even point | point when sales revenue equals the costs and expenses of making and distributing a product |
| elastic demand | change in price creats a change in demand |
| law of diminishing marginal utility | consumers will buy only so much of a given product, even though the price is low |
| inelastic demand | when a change in price has little effect on demand for the product |
| price fixing | when competitors agree to set price within certain ranges. |
| price discrimination | a firm charges diferent prices to similar customers in similar situations |
| loss leader | A good or service sold at less than market price in order to attract consumers |
| unit pricing | The use of a standard unit of measuring to compare the prices of packages that are different sizes. |
| market share | a firm's percentage of total sles volume generated by all competitors in a given market |
| demand elasticity | the extent to which a change in price causes a change in the quantity demanded. |
| Shortage | a situation in which quantity demanded is greater than quantity supplied |
| Surplus | a situation in which quantity supplied is greater than quantity demanded |
| equilibrium | the point at which quantity demanded and quantity supplied are equal |
| Unfair Trade Practices Law or Minimum Price Law | prevents large companies with market power from selling products at very low prices to drive out their competition. |
| Bait-and-switch advertising | a firm advertises a low price for an item it has no intention of selling, this is illegal. |
| Price Gouging | Pricing products unreasonably high when high demand is created by a monopoly status or natural disasters. This is illegal. |
| Barter system | a system of exchange in which goods or services are traded directly for other goods or services without the use of money. |
| Subjective Pricing | Consumers' perception of the value of a product. If a consumer believes they will get get a great deal of satisfaction from a product, they will place a high value on it and pay more money to get it. |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.