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13 Cards in this Set
- Front
- Back
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allowance
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Specified deduction from list price, including a trade-in or promotional allowance.
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bundle pricing
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Offering two or more complementary products and selling them for a single price.
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cannibalization
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Loss of sales of an existing product due to competition from a new product in the same line.
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competitive pricing strategy
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Pricing strategy designed to deemphasize price as a competitive variable by pricing a good or service at the general level of comparable offerings.
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FOB (free on board) plant (FOB origin)
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Price quotation that does not include shipping charges.
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FOB origin-freight allowed (freight absorbed)
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Price quotation system that allows the buyer to deduct shipping expenses from the cost of purchases.
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loss leader
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Product offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices.
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penetration pricing strategy
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Pricing strategy involving the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance.
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promotional pricing
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Pricing policy in which a lower than normal price is used as a temporary ingredient in a firm’s marketing strategy.
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psychological pricing
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Pricing policy based on the belief that certain prices or price ranges make a good or service more appealing than others to buyers.
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skimming pricing strategy
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Pricing strategy involving the use of a high price relative to competitive offerings.
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uniform-delivered price
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Pricing system for handling transportation costs under which all buyers are quoted the same price, including transportation expenses. Sometimes known as postage-stamp pricing.
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zone pricing
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Pricing system for handling transportation costs under which the market is divided into geographic regions and a different price is set in each region.
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