Term
|
Definition
| The general price level at which the company expects to sell the good or service. p. 549 |
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Term
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Definition
| A price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped. p. 552 |
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Term
|
Definition
| A price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill. p. 549 |
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Term
|
Definition
| An extra fee paid by the consumer for violating the terms of the purchase agreement. p. 556 |
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Term
| cumulative quantity discount |
|
Definition
| A deduction from list price that applies to the buyer’s total purchases made during a specific time period. p. 549 |
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Term
|
Definition
| Promoting a price or price saving that is not actually available. p. 546 |
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Term
| delayed-quotation pricing |
|
Definition
| A price tactic used for industrial installations and many accessory items, in which a firm price is not set until the item is either finished or delivered. p. 559 |
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Term
|
Definition
| A price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made. p. 559 |
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Term
| flexible pricing (variable pricing) |
|
Definition
| A price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities. p. 553 |
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Term
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Definition
| A price tactic that requires the buyer to absorb the freight costs from the shipping point (“free on board”). p. 552 |
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Term
| freight absorption pricing |
|
Definition
| 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. p. 552 |
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Term
| functional discount (trade discount) |
|
Definition
| A discount to wholesalers and retailers for performing channel functions. p. 550 |
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Term
|
Definition
| Costs that are shared in the manufacturing and marketing of several products in a product line. p. 558 |
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Term
| leader pricing (loss-leader pricing) |
|
Definition
| A price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store. p. 554 |
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Term
|
Definition
| Money or discounts provided by vendors to department stores to help cover end-of-season discounts offered by department stores to customers. p. 550 |
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|
Term
| noncumulative quantity discount |
|
Definition
| A deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period. p. 549 |
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|
Term
| odd–even pricing (psychological pricing) |
|
Definition
| A price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality. p. 554 |
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Term
|
Definition
| A pricing policy whereby a company charges a relatively low price for a product initially as a way to reach the mass market. p. 544 |
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Term
|
Definition
| 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. p. 544 |
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Term
|
Definition
| Marketing two or more products in a single package for a special price. p. 554 |
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Term
|
Definition
| An agreement between two or more companies on the price they will charge for a product. p. 547 |
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Term
|
Definition
| The practice of offering a product line with several items at specific price points. p. 553 |
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Term
|
Definition
| The use of discounts by salespeople to increase demand for one or more products in a line. p. 559 |
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Term
|
Definition
| A pricing policy whereby a company charges a high introductory price, often coupled with heavy promotion. p. 543 |
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Term
|
Definition
| A basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle. p. 543 |
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Term
|
Definition
| Setting prices for an entire line of products. p. 557 |
|
|
Term
| promotional allowance (trade allowance) |
|
Definition
| A payment to a dealer for promoting the manufacturer’s products. p. 550 |
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|
Term
|
Definition
| A price reduction offered for buying in multiple units or above a specified dollar amount. p. 549 |
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Term
|
Definition
| A cash refund given for the purchase of a product during a specific period. p. 478, 550 |
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Term
|
Definition
| Relates to laws that prohibit manufacturers from controlling prices at the retail level. p. 549 |
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Term
|
Definition
| A price reduction for buying merchandise out of season. p. 550 |
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|
Term
|
Definition
| A price tactic that offers all goods and services at the same price (or perhaps two or three prices). p. 552 |
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|
Term
|
Definition
| A price tactic that charges two separate amounts to consume a single good or service. p. 555 |
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Term
|
Definition
| Reducing the bundle of services that comes with the basic product. p. 554 |
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|
Term
| uniform delivered pricing |
|
Definition
| A price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge. p. 552 |
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Term
|
Definition
| Setting the price at a level that seems to the customer to be a good price compared to the prices of other options. p. 550 |
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Term
|
Definition
| A modification of uniform delivered pricing that divides the country (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone. p. 552 |
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