Pricing Laws
sets price advertising guidelines forbidding a company from advertising a price reduction unless the original price was offered to the public on a regular basis for a reasonable and recent time
Federal Trade Commission (FTC)
is an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold. This is illegal.
Price Fixing
In this state the Effort is to reduce prices to get rid of it
Decline Stage
The amount charged for a good or service
Selling Price
One way that many businesses use technology to reduce the costs associated with marking prices on products is by using which option
Computer-generated tags
This law was passed in 1914
Clayton Antitrust Act
occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market competition
Dumping
Priced higher, trying to recover its investments
Intro Stage
The actual price that a product sells for in a market at any moment
Market Price
some new companies set their selling prices as low as they can
To get market share as fast as possible
This law was passed to strengthen the Clayton Act.
Robinson-Patman Act
the practice of selling a product or service at a very low price, intending to drive competitors out of the market
Predatory Pricing
Name a product that we have seen the full life cycle
Fidget Spinner
Define ROI
Return on Investment
an external factor that affects the price that a business charges for its products
Economic conditions
Both the Clayton and Robinson-Patman Acts were passed to prevent this
What is Price Discrimination
a product sold at a low price (at cost or below cost) to stimulate other profitable sales.
Loss-Leader Pricing
This stage has Reduced prices, trying to promote sales and compete with copycat products
Growth Stage
The difference between the cost of a product and its selling price
Mark-up
the advantage to a business of using bar-code pricing
Easier to change prices
This law prevents Nike from punishing Foot Locker for selling their shoes at a low price.
Consumer Goods Pricing Act
Suzie Q's Boutique advertised a pair of leather boots for $19.99 but never actually had the boot in stock. When customers came to by the boots, sales people showed them a pair of $59.99 boots. This is
Bait-and-Switch Advertising
Effort is to stabilize prices to maintain a share of the market
Maturity Stage
When a company uses a percentage of its profits to set its sales goals
Target Return
The Standard Oil Company's price-fixing tactics and monopolistic control over oil refining and distribution in the late 1800's was a major contributing factor in the enactment of which piece of legislation?
Sherman Antitrust Act