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| a pricing policy that is established to help ustomers make merchandise comparisons and invovles establishing a specified number of price points for each merchandise classification |
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| when a retailer uses price lining and a salesperson moves a customer from a lower-priced line to a higher one |
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| when a retailer uses price lining, and a customer initially exposed to higher-priced lines expresses the desire to purchase a lower priced line |
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| is the practice of setting retail prices that end in the digits 5,8,9-- such as 29.95, 49.98, 9.99 |
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| occurs when the price of each unit in a multiple-unit package is less than the price of each unit if it were sold individually |
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| when a high demand item is priced low and is heavily advertised in order to attract customers into the store |
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| an extreme form of leader pricing where an item is sold below a retailers cost |
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| the use of high everyday prices and low leader "specials" on items typically featured in weekly ads |
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| advertising or promoting a product at an unrealistically low price to serve as "bait" and then trying to "switch" the customer to a higher priced product |
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| the selling price of the merchandise less its cost, which is equal to gross margin |
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| any reduction in teh price of an item from its intially established price |
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| a pricing objective that states a specific level of profit, such as percentage of sales or return on capital invested, as an objective |
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| a pricing objective that seeks to obtain as much profit as possible |
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| a pricing objective in which price is initially set high on merchandise to skim the cream of demand before selling at more competitive prices |
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| a pricing objective in which price is set at a low level in order to penetrate the market and establish a loyal customer base |
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| a range of prices for a particular merchandise line that appeals to customers in a certain market segment |
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Term
| Below-Market Pricing Policy |
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Definition
| a policy that regularly discounts merchandise from the established market price in order to build store traffic and generate high sales and gross margin dollars per square foot of selling space |
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| a policy in which the retailer sets prices for goods and services and seeks to maintain those prices over an extended period of time |
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| a policy that recognizes that differences in demand and cost necessitate that the retailer change prices in a fairly predictable manner |
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| a policy that encourages offering the same products and quantities to different customers at different prices |
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| a policy that establishes that the retailer will charge all customers the same price for an item |
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| Above-Market Pricing Policy |
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Definition
| a policy where retailers establish high prices because nonprice factors are more important to their target market than price |
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