Inflation
The measurement tool used to measure inflation
What is Consumer Price Index?
allows a business to survive as well as grow
What is normal profit?
process of purchasing products based on desire rather than logic
What is emotional buying?
What influence type is "Give a little something to get a little something in return"
What is Reciprocity?
technique whereby a company advertises a product or service at a low price to lure in customer and then attempt to persuade them to pay more
What is low-balling?
occurs when producers raise prices because their costs to create products are rising. (type of inflation)
Cost-push inflation
sets the price high when a product is first introduced in order to recover the R&D costs
What is cost-recovery pricing?
happens when people buy something on the spur of the moment without thinking it through or planning the purchase
what is impulse buying?
What influence is based on people's feeling and emotions about a certain brand?
What is commitment and consistency?
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?
Occurs when high prices are lowered due to decreased demand, but then are restored to the previous high level. (Type of inflation)
What is reflation?
price is set to be competitive with prices of similar products currently being sold.
What is market-based pricing?
when they are saving as much as possible and spending money only when necessary consumers are
What is economizing?
What influence is this "people doing what they observe other people doing".
What is social proof?
an illegal, multilevel marketing gimmick that promises members commissions from their own sales as well as from the sales of other members they recruit
What is pyramid scheme?
Occurs when prices are rising so rapidly, they are out of control (Type of inflation)
the seller tries to determine how much consumers are willing to pay for the product.
What is value-based pricing?
process of selecting goods and services based on need, want, and logical choices
what is rational buying?
What influence is "The more you like someone, the more you’ll be persuaded by them"
What is liking?
scam in which a con artist convinces people to give up their money or personal information in return for a share of a larger sum of money
What is pigeon drop?
Results in higher prices consumers want to buy more goods and services than producers supply. (Type of inflation)
What is demand-pull inflation?
an addition of a percentage of the per-unit cost to a good/service
What is Markup?
what is optimizing?
The influence when someone trusts a person because of their position
What is authority?
A fraudulent investment operation in which money collected from new investors is used to pay off earlier investors
What is ponzi scheme?