Legal and Ethical Issues
Is responsible for overseeing the safety of products such as toys, electronics, and household furniture.
What is Consumer Product Safety Commission?
Set a very high price for a new product then lowers the price.
What is price skimming?
The path a product take from its producer or manufacturer to the final user.
What is channel distribution?
Online retailing.
What is e-tailing?
Responsible for enforcing the principles of a private enterprise system and protecting consumers from unfair or deceptive business practices.
What is The Federal Trade Commission?
Regulates the labeling and safety of food, drugs, and cosmetics sold throughout the U.S.
What is Food and Drug Administration?
The price of a product is set very low then the price increases.
What is penetration pricing?
Businesses that buy large quantities of goods from manufacturers, store the goods, and then resale them to retailers.
What is wholesalers?
Occurs when the producer sells goods or services directly to the customer.
What is direct distribution?
Was established in 1970 to protect human health and our environment.
What is Environmental Protection Agency?
Is responsible for the fair and equitable treatment of employees with regard to hiring, firing, and promotions.
What is Equal Employment Opportunity Commission?
Pricing techniques that help create an illusion for customers.
Example: .99 instead of $1
What is psychological pricing?
Manage inventory and merchandising for retailers by counting stock, filling the shelves when needed, and maintaining store displays.
What is rack jobbers?
Involves one or more intermediaries.
What is indirect distribution?
Free
Free
Regulates the sale of securities (stocks and bonds).
What is Securities and Exchange Commission?
Refers to price adjustments required because of different shipping agreements.
What is geographical pricing?
Own the goods they sell, but they do not physically handle the actual product.
What is drop shippers?
Name 2 channel members.
Manufacturer/Producer, Wholesaler, Retailer, Agent
Several product in a package that is sold at a single price.
What is product bundling pricing?
Sets guidelines for workplace safety and environmental concerns.
What is Occupational Safety and Health Administration (OSHA)?
Used in conjunction with sales promotions wherein prices are reduced for a short period of time.
What is promotional pricing?
Sells goods to customers from their own physical stores.
What are brick-and-mortar retailers?
Acts as intermediaries by bringing buyers and sellers together.
What is a agent?
Additional pricing to enhance product.
What is optional pricing?