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Definition
| is the amount of money that is charged for 'something' of value |
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| sets a specific level of profit as an objective, often a percentage of sales or capital investment |
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| Profit Maximization objective |
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Definition
| seeks to get as much profit as possible. |
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| seeks some level of unit sales, dollar sales, or share of market... without refering to profit |
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| dont-rock-the-pricing-boar objectives. trying to meet competition |
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| aggressive action on one or more of the P's other than price |
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| offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities |
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| offering the same product and quantities to different customers at different prices |
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Definition
| tries to sell the top(skim the cream?)of a market, the top of the demand curve, at a high price before aiming at more price-sensitive customers....Apple loves this |
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| Penetration pricing policy |
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Definition
| tries to sell the whole market at one low price. (best in a market with no rich people) |
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| Cumulative Quality discount |
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Definition
| apply to purchases over a given period- such as a year- and the discount usually increases as the amount purchased increases. (encourages repeat buying because prices go down as you buy more) |
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| non-cumulative quantity discount |
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Definition
| apply to only indivudual orders. (encourage larger order but do not tie a buyer to the seller after that one purchase. (10 for 10$ kinda deals/ not over time) |
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Definition
| means the buyer can take a 2% discount off the face value of the invoice if the invoice us paid within 10 days. |
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| Trade(functional discount) |
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Definition
| is a list price reduction given to channel members for the job they are going to do. |
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Definition
| sometimes called 'slotting allowances', are given to an intermediary to get shelf space for a product. |
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| is a price reduction given for used products when similar new products are bought. |
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| Free On Board- transportation responsibility switches from seller to buyer. Buyer takes responsibility for paying freight and also any damages while in transit |
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Definition
| making an average freight charge to all buyers within specific geographic ares |
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| Uniform Delivered pricing |
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Definition
| Making an average freight charge to all buyers. |
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| Freight Absorption pricing |
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Definition
| means absorbing freight cost so that a firms delivered price meets that of the nearest competitor |
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| Unfair Trade Practice Acts |
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Definition
| put lower limit on prices, especially at wholesale and retail levels |
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Term
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Definition
| pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market. |
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