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35 Cards in this Set

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A concession in price to achieve a desired goal
allowance
The fixed cost per unit produced; calculated by dividing fixed costs by number of units produced
average fixed cost
The sum of the average fixed cost and the average variable cost
average total cost
The variable cost per unit produced; calculated by dividing variable costs by number of units produced
Average variable cost
The trading of products.
barter
Geographic pricing that combines factory price and freight charges from the base point nearest the buyer
base point pricing
The point at which the costs of producing a product equal the revenue made from selling the product
breakeven point
A price reduction given to buyers for prompt payment or cash payment
cash discount
A quantity discount aggregated over a stated period
cumulative discount
A graph of the quantity of products expected to be sold at various prices if other factors remain constant
demand curve
A comparison price provided by others
external reference price
Costs that do not vary with changes in the number of units produced or sold; costs allocated on the basis of how money was actually spent, such as rent, salaries, office supplies, and utilities
fixed costs
A price indicating the producer is absorbing shipping costs
F.O.B. destination
The price of merchandise at the factory, before shipment
F.O.B. factory
Absorption of all or part of actual freight costs by the seller
freight absorption pricing
Reductions for transportation and other costs related to the physical distance between buyer and seller
graphic pricing
A price developed in the buyer's mind through experience with the product
internal reference pricing
The extra cost incurred by producing one more unit of a product
marginal cost MC
The change in total revenue resulting from the sale of an additional unit of a product
Marginal Revenue MR
A one-time price reduction based on the number of units purchased, the size of the order, or the product combination purchased
Noncumulative discount
Emphasizing factors other than price to distinguish a product from competing brands
nonprice competition
Drawn to products that signify prominence and status
prestige sensitive
The value that is exchanged for products in a marketing transaction
Price
Emphasizing price as an issue and matching or beating competitors' prices
price comeptition
Striving to pay low prices
price consious
Employing price differentials that injure competition by giving one or more buyers a competitive advantage> and is prohibited by law
Price discrimination
A measure of the sensitivity of demand to changes in price
price elasticity of demand
Deductions from list price for purchasing in large quantities
quantity discount
A price reduction given to buyers for purchasing goods or services out of season
seasonal discount
The sum of average fixed and average variable costs times the quantity produced
total cost
A reduction off the list price a producer gives to an intermediary for performing certain functions.
trade (functional) discount
Prices charged in sales between an organization's units
transfer pricing
Charging all customers the same price, regardless of geographic location; sometimes called postage-stamp pricing
uniform geographic pricing
Concerned about price and quality of a product
Value consious
Costs that vary directly with changes in the number of units produced or sold
variable costs