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12 terms

Chapter 11 Vocab.

STUDY
PLAY
Price Skimming
Method of introducing a product by charging a high price to recover costs as quickly as possible.
Penetration Pricing
Method of introducing a product by charging a low initial price to keep unit costs to customers as low as possible.
Psychological Pricing
Pricing strategy based on the belief that customers base perceptions of a product on price.
Prestige Pricing
Pricing an item at a higher than average price.
Odd/ Even Pricing
Pricing an item at an odd price to suggest a bargain, or an even price to suggest higher quality.
Price Lining
Pricing an item according to its category.
Promotional Pricing
Pricing an item at a low price for a limited period to generate sales.
Discount Pricing
A pricing technique that offers customers reduction from the regular price.
Break-even Point
The point at which sales revenue equals the costs and expenses of making and distributing a product.
Markup
An amount added to the cost of a product to determine the selling price.
Markdown
The amount of money taken from the original price.
Special Market Circumstances
Circumstances calling for a temporary price increase.