Pricing

Offered to buyers to encourage them to pay bills quickly.

When competitors agree on price ranges within which they set own prices.

Pricing involves setting pricing 4 accessories or variations sold w main product

Relies on the basic premises of supply & demand theory and on demand elasticity factors.

Financial calculations used to determine relative profitability is...

Setting higher-than-average prices to suggest status and high quality to the consumer.

When a price is set higher than normal for a high demand product.

Value = anticipated satisfaction.

What agency oversees advertising law & ethics?

Customers are offered a price reduction if they sell back an old model of the product they buy.

When a firm changes different prices to similar customers in similar situations.

Price of products/services are reduced for a short time based on a specific event.

Company offers several complementary products in a package w main product sold @ a single price

Consumers will buy only so much of a given product, even if the price is low.

Pricing sets price for 1 product low but sets product supplies high

prices that factor costs, consumers, competition, laws, regs, economics, & exchange rate

A percentage that represents the difference between an item's cost and sale price.

Setting price figures that end if different numbers to convey a bargain image or quality image.

Low prices set on a consistent basis w/out raising them or offering additional discounts.

Helps businesses get rid of excess materials used in making a product using low prices

A company's % of the total sales volume generated by all companies in a given market.

Pricing technique that sets limited number of prices 4 specific groups of lines of merchandise

Situations in which a price change has little effect on product demand.

The point where sales revenue = costs & expenses of production & distribution

If customers believe they will get lots of satisfaction from a product...

This is the reason for retail prices being suggested by the retailer than mandated.

MSRP stands for...

Reductions offered to buyers wiling to buy outside the customary time of year.

A business advertises at a low price on an item w no intention of selling.

The business takes a loss on the items to lead customers into the store.

Pricing items in more than one grouping to suggest a bargain and increase sales volume.

A relative standing a competitor has in a given market against other competitors.

Pricing method where costs are calculated & projected profit margin is added.

Price adjustments required because of different shipping agreements due to locations

Used in conjunction w sales promotions & prices are reduced for a short time.

Situations in which change in price created a change in demand.

Two or more different prices for a product w no difference in item's cost

Market factors that affect price are...

Allows customers to compare prices in relation to a standard measure.

Manufacturers partial refunds after a purchase & price reductions given at the time of purchase

Pricing techniques that create an illusion based on buyer motivation & purchase habits.

Involves adjusted prices 2 maximize the profitability 4 a group of products rather than 1 item.

A pricing method where there is no relation between cost & price or between demand & price

Pricing policy that sets a high price for a new product & is used when demand exceeds supply.

Variation of demand elasticity...

Price for a new product is set low to encourage people to buy.

Manufacturers quote prices to wholesalers & retailers and establish MSRP & then grant discounts

Prohibits "below-cost" pricing that drives out competition.