Mix it up
•The ______ of a product is the general price at which a company expects to sell a product.
base price
•______ is a pricing strategy that creates an image of a product and entices customers to buy.
•Psychological pricing
•_____ sets prices low for a limited period of time.
•Discount pricing
•__________ is the practice of advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in the store
•Bait and switch
• ______ is the raising of prices on certain kinds of goods to an excessively high level during an emergency.
•Price gouging
•The ______ is the actual price the customer pays for a product.
selling price
•_____ pricing sets prices to end in an odd number; conveys a bargain.
•_____ pricing sets prices to end in an even number, most often zero; conveys quality.
•Odd
•Even
•______ is a percentage deducted from the total invoice amount that is offered to encourage a customer to pay a bill early.
•A cash discount
•______ is when two or more businesses in an industry agree to sell the same product at a set price, which is usually high
•Price-fixing
•A _______ is the price recommended for a product by the manufacturer.
•manufacturer’s suggested retail price (MSRP)
•The ______ refers to the decisions made about pricing levels, discounts offered, and credit extended to customers.
price mix
•______ sets prices high to convey quality and status.
•Prestige pricing
•A ______ offers a reduced per-item price for larger numbers of an item purchased.
•A quantity discount
•The ______ of a product is the established price printed in a catalog, on a price tag, or in a price list.
•The list price
•A ______ controls the market for a single product, which interferes with the workings of a market economy.
•A monopoly
•______ pricing is one common strategy for adjusting price.
Product Mix
•______ sets and maintains prices that are perceived by customers to be low.
•Everyday low pricing (EDLP)
•A _______ is when buyers receive a lower price for trading in a similar product during the sales transaction.
•A trade-in discount
• ______ is a pricing method that allows customers to compare prices based on a standard unit of measure, such as an ounce or a pound.
•Unit pricing
•A _______ is an item that is priced much lower than the current market price or the cost of the product, resulting in a loss on each sale.
• _______ ban this pricing method.
•A loss leader
•Sales-below-cost (SBC) laws
What are the 4 types of price mix pricing?
•Price lining
•Captive
•Optional
•Bundling
•______ pricing gives customers a free or reduced-price item when another is purchased at full price; conveys savings and value.
•Buy one, get one (BOGO)
•A _____ increases sales by creating a sense of urgency in customers.
•A _____ is given to buyers who are frequent customers or have a membership with the company.
•A _____ is for customers who purchase goods well in advance or at the end of a season.
•A promotional discount
•A loyalty discount
•A seasonal discount
•_______ is when a company sells the same product to different customers at different prices based on personal characteristics
• ______ is the practice of setting the prices of products in a way to intentionally mislead a customer
• ______ is setting very low prices to remove competition
•Price discrimination
•Deceptive pricing
•Predatory pricing
Give two examples of price controls
•Price ceilings
•Price floors