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15 Cards in this Set
- Front
- Back
3 methods to use in competition-oriented approaches
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1- at,above or below market pricing - price based on the market benchmark or from competition
2- customary - pricing thru tradition 3- loss-leader - pricing not intended to increase sales but rather to bring customers hoping theyll buy other products w/ higher markups |
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formula for target return on sales
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ROS = target profit/target revenue
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3 methods used in profit-oriented pricing approaches
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1- target ROI
2- target return on sales 3- target profit |
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difference b/t flexible-price policy & one-price policy
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FPP- setting different prices for prod depending on indiv buyers & purchase situations
OPP- setting one price for all buyers for a prod |
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price war
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successive price cutting by competition in hopes of increasing sales or market share
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types of discounts
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quantity
seasonal trade cash |
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define "2/10 net 30"
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retailer can take a 2% discount if the bill is paid w/in 2 days in not just make the regular payment w/in 30 days
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3 types of special adjustments that can be made to prices
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1- discounts
2- allowances 3- geographical adjustments |
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what is a company inspired to do in order to receive a cash discount
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pay their bills to the manufacturer quickly w/in a certain period of time
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why is "everyday low pricing" not always a good thing
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b/c although they r good prices for the consumers that will often buy it it can substanially reduce a retailer's profits
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at what point does the title of the goods transfer to the buyer in FOB origin pricing?
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at the point of loading
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difference b/t price discrimination & deceptive pricing
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PD- setting diff prices to diff buyers for the same type of goods
DP- price deals that mislead consumers |
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promotional allowances
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incentives for retailers to use extra advert or selling activities to promote a manuf product
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2 methods of pricing based on transportation costs
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1- FOB origin pricing
2- uniform delivered pricing |
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diff b/t cumulative & noncumulative quantity discounts
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CQD- apply to the accumulation of purchases of a prod over a given period of time
NQD- based on size of individual purchase |