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status quo pricing
a pricing objective that maintains existing prices or meets the competition's prices
the quality of a product that will be sold in the market at various prices for a specified period
the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
a situation in which an increase or a decrease in price will not significantly affect demand for the product
yield management systems (YMS)
a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discount prices, and overbook capacity
the cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for
a method of determining what sales volume must be reached before total revenue equals total costs
a basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle
a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
a price reduction offered to buyers buying in multiple units or above specified dollar amount
cumulative quantity discount
a deduction from list price that applies to the buyer's total purchases made during a specific period
noncumulative quantity discount
a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
functional discount (trade discount)
a discount to wholesalers and retailers for performing channel functions
promotional allowance (trade allowance)
a payment to a dealer for promoting the manufacturer's products
setting the price at a level that seems to the customer to be a good price compared to the prices of other options
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 charges and bills every purchaser 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 price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
flexible pricing (variable pricing)
a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
leader pricing (loss-leader pricing)
a price tactic in which a product is sold near or even below cost in hope that shoppers will buy other items once they are in the store
a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
odd-even pricing (psychological pricing)
a price tactic that uses odd-numbered prices to connote bargains and even-number prices to imply quality
a price tactic that charges two separate amounts to consume a single good or service
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