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56 Cards in this Set

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What is price?
Price is that which is given up in an exchange to acquire a good or service.
What is revenue?
The price charged to customers multiplied by the number of units sold.
What is profit?
Revenue minus expenses.
What is profit maximization?
Setting prices so that total revenue is as large as possible relative to total costs.
What is return on investment?
Net profit after taxes divided by total assets.
What is a market share?
A company's product sales as a percentage of total sales for that industry.
What is demand?
The quantity of a product that will be sold in the market at various prices for a specific period.
What is supply>
The quantity of a product that will be offered to the market by a supplier at various prices for a specific period.
What is price equilibrium?
The price at which demand and supply are equal.
What is elasticity of demand?
Consumers' responsiveness or sensitivity to changes in price.
What is elastic demand>
consumers buy more or less of a product when price changes.
What is inelastic demand?
An increase or decrease in price will not change the demand.
Variable costs?
deviate with changes in level of output.
Fixed costs?
do not deviate as level of output changes.
What is price strategy?
A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.
What is penetration pricing?
A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market.
Unfair Trade Practice Acts?
Laws that prohibit wholesalers and retailers from selling below cost.
Price fixing?
An agreement between two or more firms on the price they will charge for a product.
Price discrimination?
Prohibits any firm from selling to two or more different buyers at different prices if the result would lessen competition.
Predatory Pricing?
The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.
Value-Based Pricing?
The price is set at a level that seems to the customer to be a good price compared to the prices of other option.
FOB Origin Pricing?
The buyer absorbs the freight costs from the shipping point.
Uniform Delivered pricing?
The seller pays the freight charges and bills the purchaser an identical, flat freight charge.
Zone pricing?
The US is divided into zones and a flat freight rate is charged to customers in that zone.
Freight Absorption pricing?
The seller pays for all or part of the freight charges and does not pass them on to the buyer.
Basing-Point Pricing?
The seller designated a location as a basing point and charges all the buyers the freight costs from that point.
Marketing Channel?
A set of interdependent orgs. that ease the transfer of ownership as products move from producer to business user or consumer.
Supply Chain?
The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.
Specialization and division of labor?
Provides efficiency and cost savings. Attains economies of scale. Aids producers who lack resources to market directly. Builds good relationships with customers.
Discrepancy of Q?
The difference between the amount of product produced and the amount an end user wants to buy.
Discrepancy of Assortment?
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Temporal Discrepancy?
A situation that occurs when a product is produced but a customer is not ready to buy it.
Spatial Discrepancy?
The difference between the location of a producer and the location of widely scattered markets.
Retailer?
A channel intermediary that sells mainly to customers.
Merchant Wholesaler?
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
Agents and Brokers?
Wholesaling intermediaries who facilitate the sale of a product by representing channel member.
Logistics?
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
Direct Channel?
A distribution channel in which producers sell directly to consumers.
Supply Chain Management?
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and eco. value.
Supply Chain Communicator?
Communicator of customer demand from point of sale to supplier.
Physical flow process?
that engineers the movement of goods.
Marketing Channel?
A set of interdependent orgs. that ease the transfer of ownership as products move from producer to business user or consumer.
Supply Chain?
The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.
Specialization and division of labor?
Provides efficiency and cost savings. Attains economies of scale. Aids producers who lack resources to market directly. Builds good relationships with customers.
Discrepancy of Q?
The difference between the amount of product produced and the amount an end user wants to buy.
Discrepancy of Assortment?
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Temporal Discrepancy?
A situation that occurs when a product is produced but a customer is not ready to buy it.
Spatial Discrepancy?
The difference between the location of a producer and the location of widely scattered markets.
Retailer?
A channel intermediary that sells mainly to customers.
Merchant Wholesaler?
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
Agents and Brokers?
Wholesaling intermediaries who facilitate the sale of a product by representing channel member.
Logistics?
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
Direct Channel?
A distribution channel in which producers sell directly to consumers.
Supply Chain Management?
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and eco. value.
Supply Chain Communicator?
Communicator of customer demand from point of sale to supplier.
Physical flow process?
that engineers the movement of goods.