Pricing Objectives/strategies
Sales - Costs =
What is profit?
The rule that says, "if price increases, the quantity demanded of a product will decrease."
What is the law of demand?
A discount for buying a winter coat in the middle of July.
What is a seasonal discount?
aka. False Advertising
What is bait and switch?
All of the businesses, resources, materials, information, activities, and people that take raw materials and turn them into products that are then moved ultimately reach the consumer.
What is the supply chain?
A short term goal used by businesses to increase the number of units sold
What is the sales-oriented pricing objective?
The demand for Epi-pen's (or other life saving products without substitutes)
What is inelastic?
Charging $100.00 instead of $99.99.
What is even pricing?
What is predatory pricing?
When a product is sold from the producer to consumer without an intermediary.
What is the direct channel?
When a company charges a higher price compared to competitors in an effort to recover costs more quickly.
What is price skimming?
The stage of the product life cycle where price first decreases or is discounted.
What is maturity?
An example of this fine-tuning tactic is when a company has a consumer spin a wheel to win a special price offer when the consumer logs on to its website.
What is a gambled price discount?
Kids under the age of 5 go to Orioles games for free is an example of this legal pricing tactic.
What is price discrimination?
The inputs needed to create goods and services.
What are the Factors of Production?
Best Buy's pricing strategy
What is the status-quo pricing strategy?
Hourly employees and the cost of materials
What are examples of variable costs?
The Dollar Store's pricing tactic
What is the single price tactic?
When a company increases the prices of basic necessities to 10% more during a state of emergency than during normal times.
What is price gouging?
What is the indirect channel?
A pricing strategy that could also be called "personalization" of price.
What is dynamic pricing?
An increase in the general price level of goods and services in an economy.
What is inflation?
A product sold at a price below cost or at a loss in hopes that it will bring customers into the store and then salespeople will convince them to buy more products.
What is leader pricing?
aka. collusion
What is price fixing?
What is a distribution channel?