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42 Cards in this Set

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the amount of money that is charged for "something" of value

target return objective

specific level of profit as an objective

profit maximaization objective

an objective to get as much profit as possible

sales-oriented objective

an objective to get some level of unit sales, dollar sales, or share of market - without referring to profit

status quo objectives

dont rock the pricing boat objective

nonprice competition

aggressive action on one or more of the Ps other than price

administered prices

consciously set prices aimed at reaching the firms objectives

one-price policy

offering the same price to all customers who purchasing products under essentially the same conditions and in the same quantities

flexible-price policy

offering the same product and quantities to different customers at different prices

skimming price policy

trying to sell the top of the market - the top of the demand curve at a high price before aiming at more price sensitive customers

penetration pricing policy

trying to sell the whole market at one low price

introductory price dealing

temporary price cuts to speed new products into a market and get customers to try them

basic list prices

the prices that final customers or users are normally asked to pay for products


reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves

quantity discounts

discounts offered to encourage customers to buy in large amoutns

cumulative quantity discounts

reductions in price for larger purchases over a given period such as a year

noncumulative quantity discounts

reductions in price when a customer purchases a larger quantity on an individual order

seasonal discounts

discounts offered to encourage buyers to buy earlier than present demand requires


an invoice term meaning that payment for the face value of the invoice is due immediately also see cash discounts

cash discounts

reductions in the price to encourage uyers to pay their bills quickly

2/10, net 30

allows a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days

trade (functional) discount

a list price reduction given to channel members for the job they are going to do

sale price

a temporary discount from the list price

everyday low pricing

setting a low list price rather than relying on frequent sales, discounts, or allowances


reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something

advertising allowances

price reductions to firms in the channel to encourage them to advertise or otherwise promote the firms products locally

stocking allowances

allowances given to wholesalers or retailers to get shelf space for a product - sometimes called slotting allowances

push money (or prize money) allowances

allowances (sometimes called PMs or spiffs) given to retailers by manufacturers or wholesalers to pass on to the retailers sales clerks for aggressively selling certain ites

trade-in allowance

a price reduction given for used products when similar new products are bought


refunds to consumers after a purchase


a transportation term meaning free on board some vehicle at some point

zone pricing

making an average freight charge to all buyers within specific geographic areas

uniform delivered pricing

making an average freight charge to all buyers

freight absorption pricing

absorbing freight cost so that firms delivered price meets the nearest competitors

value pricing

setting a fair price level for a marketing mix that really gives the target market superior customer value

unfair trade practice acts

put a lower limit on prices especially at the wholesale and retail levels


pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market

phony list prices

misleading prices that customers are shown to sugest that the price they are to pay has been discounted from list

Wheeler Lea Amendment

law that bans unfair or deceptive acts in commerce

price fixing

competitors illegally getting together to raise lower, or stabilize prices

robinson-patman act

a 1936 law that makes illegal any price discrimination if it injures competition

price discrimination

injuring competition by selling the same products to different buyers at different prices