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42 Cards in this Set
- Front
- Back
price |
the amount of money that is charged for "something" of value |
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target return objective |
specific level of profit as an objective |
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profit maximaization objective |
an objective to get as much profit as possible |
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sales-oriented objective |
an objective to get some level of unit sales, dollar sales, or share of market - without referring to profit |
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status quo objectives |
dont rock the pricing boat objective |
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nonprice competition |
aggressive action on one or more of the Ps other than price |
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administered prices |
consciously set prices aimed at reaching the firms objectives |
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one-price policy |
offering the same price to all customers who purchasing products under essentially the same conditions and in the same quantities |
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flexible-price policy |
offering the same product and quantities to different customers at different prices |
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skimming price policy |
trying to sell the top of the market - the top of the demand curve at a high price before aiming at more price sensitive customers |
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penetration pricing policy |
trying to sell the whole market at one low price |
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introductory price dealing |
temporary price cuts to speed new products into a market and get customers to try them |
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basic list prices |
the prices that final customers or users are normally asked to pay for products |
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discounts |
reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves |
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quantity discounts |
discounts offered to encourage customers to buy in large amoutns |
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cumulative quantity discounts |
reductions in price for larger purchases over a given period such as a year |
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noncumulative quantity discounts |
reductions in price when a customer purchases a larger quantity on an individual order |
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seasonal discounts |
discounts offered to encourage buyers to buy earlier than present demand requires |
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net |
an invoice term meaning that payment for the face value of the invoice is due immediately also see cash discounts |
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cash discounts |
reductions in the price to encourage uyers to pay their bills quickly |
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2/10, net 30 |
allows a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days |
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trade (functional) discount |
a list price reduction given to channel members for the job they are going to do |
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sale price |
a temporary discount from the list price |
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everyday low pricing |
setting a low list price rather than relying on frequent sales, discounts, or allowances |
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allowances |
reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something |
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advertising allowances |
price reductions to firms in the channel to encourage them to advertise or otherwise promote the firms products locally |
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stocking allowances |
allowances given to wholesalers or retailers to get shelf space for a product - sometimes called slotting allowances |
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push money (or prize money) allowances |
allowances (sometimes called PMs or spiffs) given to retailers by manufacturers or wholesalers to pass on to the retailers sales clerks for aggressively selling certain ites |
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trade-in allowance |
a price reduction given for used products when similar new products are bought
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rebates |
refunds to consumers after a purchase |
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F.O.B |
a transportation term meaning free on board some vehicle at some point |
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zone pricing |
making an average freight charge to all buyers within specific geographic areas |
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uniform delivered pricing |
making an average freight charge to all buyers |
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freight absorption pricing |
absorbing freight cost so that firms delivered price meets the nearest competitors |
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value pricing |
setting a fair price level for a marketing mix that really gives the target market superior customer value |
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unfair trade practice acts |
put a lower limit on prices especially at the wholesale and retail levels |
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dumping |
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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phony list prices |
misleading prices that customers are shown to sugest that the price they are to pay has been discounted from list |
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Wheeler Lea Amendment |
law that bans unfair or deceptive acts in commerce |
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price fixing |
competitors illegally getting together to raise lower, or stabilize prices |
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robinson-patman act |
a 1936 law that makes illegal any price discrimination if it injures competition |
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price discrimination |
injuring competition by selling the same products to different buyers at different prices |