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13 Cards in this Set
- Front
- Back
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breakeven analysis
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Pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost.
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customary prices
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Traditional prices that customers expect to pay for certain goods and services.
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elasticity
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Measure of responsiveness of purchasers and suppliers to a change in price.
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fair-trade laws
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Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product.
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modified breakeven analysis
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Pricing technique used to evaluate consumer demand by comparing the number of products that must be sold at a variety of prices to cover total cost with estimates of expected sales at the various prices.
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price
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Exchange value of a good or service.
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Profit Impact of Market Strategies (PIMS) project
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Research that discovered a strong positive relationship between a firm’s market share and product quality and its return on investment.
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profit maximization
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Point at which the additional revenue gained by increasing the price of a product equals the increase in total costs.
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Robinson-Patman Act
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Federal legislation prohibiting price discrimination that is not based on a cost differential; also prohibits selling at an unreasonably low price to eliminate competition.
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target-return objective
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Short-run or long-run pricing objectives of achieving a specified return on either sales or investment.
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unfair-trade laws
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State laws requiring sellers to maintain minimum prices for comparable merchandise.
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value pricing
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Pricing strategy emphasizing benefits derived from a product in comparison to the price and quality levels of competing offerings.
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yield management
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Pricing strategy that allows marketers to vary prices based on such factors as demand, even though the cost of providing those goods or services remains the same; designed to maximize revenues in situations such as airfares, lodging, auto rentals, and theater tickets, where costs are fixed.
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