Vocabulary
What is marketplace?
Is anywhere buyers and sellers meet to exchange goods, services, and money.
Odd pricing
is when the price ends in an odd number, such as $19.99. Consumers perceive the price to be lower than it actually is.
What is step 1?
Identify the Decision to Be Made
What's one question to ask?
What are the source’s credentials?
Clearance sale
Merchandise price has been reduced from previous prices
What are brick-and-mortar stores?
Retail stores that sell directly from a physical location
Even pricing
is when the price ends in an even number, usually zero. Customers perceive products with even prices to be of high quality.
What is step 2?
Explore the Alternatives
What's one question to ask?
What is the reputation of the source of information?
Closeout sale
Merchandise is being discontinued or is no longer being produced
What is telemarketing?
Is the sale of merchandise by phone. Telemarketers sell everything from kitchen appliances to insurance to burial plots.
Prestige pricing
sets prices high to send the message of status and quality.
What is step 3?
Make a Choice
What question should be asked?
Is the source from the mainstream media or unknown?
Going-out-of-business sale
Seller is closing its business and selling goods at reduced prices to hasten the closing; sellers cannot legally use this phrase if they are not closing
What is E-commerce?
Is buying and selling goods and services over the Internet, as well as transferring money or data.
BOGO
gives customers a free or discounted product when another one is purchased for the full price
What is step 4?
Implement the Decision
What question do you ask?
Is the information current?
Introductory offer
New merchandise is selling at a price that will increase after the initial offer
What is a consumer cooperative?
A nonretail association owned and operated by a group of members for their own benefit rather than for profit.
Price lining
sets various levels of prices on similar products to convey different levels of quality.
What is step 5?
Evaluate the Purchase
What question should be asked?
Can the information be validated through other reliable sources?
Liquidation
Merchandise is selling at reduced prices in order to aid in converting inventory to cash