Entrepreneurship - Chapter 11 Vocab
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Created by:
NeilKelty Plus on November 7, 2006
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22 terms
Terms | Definitions |
|---|---|
 fixed | costs and expenses not subject to change depending on the number of units sold |
| variable | costs and expenses that are subject to change depending on the number of units sold |
| price gouging | pricing above the market when no alternative retailer is available |
| price fixing | an illegal practice in which competing companies agree, formally or informally to restrict prices within a specified range. |
| resale price maintenance | price fixing imposed by a manufacturer on wholesale or retail resellers of its products to deter price-based competition |
| unit pricing | the required pricing of goods on the basis of cost per unit of measure |
| bait-and-switch | a type of advertising that is a deceptive method of selling in which customers, attracted to a store by sale-priced items are told either that the advertised item is out of stock or is inferior to a higher priced item that is available |
| return on investment | the amount earned as a result of an investment |
| price skimming | involves charging a high price to recover costs and maximize profit as quickly as possible. |
| penetration pricing | builds sales by charging a low initial price to keep unit costs to customers as low as possible |
| psychological pricing | refers to pricing techniques that are based on the belief that customers perceptions of a product are strongly influences by price. |
| prestige pricing | a pricing technique in which higher than average prices are used to suggest status and prestige to the customer. |
| odd/even pricing | a pricing technique in which odd numbers are employed to suggest a bargain. |
| price lining | a pricing technique in which items in a certain category are priced the same. |
| promotional pricing | a pricing technique in which lower sales prices are offered for a limited period of time to stimulate sales. |
| multiple unit pricing | a pricing technique in which items are priced in multiples. |
| bundle pricing | a pricing technique in which several complementary products are sold at a single price |
| discount pricing | offers customer reductions from the regular price. |
| break-even point | the point at which the gain from an economic activity equals the cost incurred in pursuing it |
| selling price | the actual or projected price per unit. |
| markup | the amount added to the cost of an item to cover expenses and ensure a product. |
| markdown | the amount of money taken from the original price |
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