Inflation
An increase in the general level of prices for goods and services
What is inflation
Allows a business to survive as well as grow
What is Normal Profit?
The process of selecting goods and services based on need, want, and logical choices
What is rational buying?
Convenience, customer service, and providing the right product and price
What are ways businesses meet demand?
Occurs when false or misleading claims are made about the quality, price, or purpose of a particular product
What is deception?
A measure of the efficiency with which goods and services are made
What is Productivity?
Sets the price high to recover the costs of research and development of a new product
What is cost-recovery pricing?
Purchasing products based on desire rather than logic
What is emotional buying?
Stores use this strategy by carrying certain brands to attract customer who are loyal to those brands
What is branding strategy?
An illegal sales technique in which a business advertises a product with the intent of persuading consumers to buy a more expensive product
What is "bait and switch"?
This type of inflation results in higher prices because consumers want to buy more goods and services than producers supply
What is demand-pull inflation?
Sets the price by computing the per-unit cost and then adding a percentage of that amount
Saving as much as possible and spending money only when necessary
What is economizing?
Businesses offer consumers the lowest everyday price possible, without having to wait for a sale
What is discount pricing?
A company advertises a product/service at a low price to lure in customers and then attempts to persuade them that they need additional products or services
What is "low-balling"?
This occurs when high prices are lowered due to decreased demand, but then are restored to the previous high level
What is Reflation?
Prices are set based on how much consumers are willing to pay for the product
What is value-based pricing?
Getting the highest value for the money spent
What is optimizing?
A specific group of people who are likely to buy a product
What is a target audience?
Promises members commissions from their own sales as well as from the sales of other members they recruit
What is a "pyramid scheme"?
This is a decrease in the general level of prices for goods and services
What is deflation?
Prices are set to be competitive with prices of similar products currently being sold
What is market-based pricing?
Advertising a feature of a product to make it more desirable than other products.
What is product differentiation?
Designed to encourage repeat business by providing special discounts and other incentives
What is a customer loyalty program?
A scam that convinces people to give up their money or personal information in return for a share of a larger sum of money
What is a "pigeon drop"?