Flashcards in Chapter 20 Deck (36):
The value paid for a product in a marketing exchange.
The trading of products.
Emphasizing price as an issue and matching or beating competitor's prices.
Emphasizing factors other than price to distinguish a product from competing brands.
A graph of the quantity of products expected to be sold at various prices if other factors remain constant.
Price Elasticity of Demand
A measure of the sensitivity of demand to changes in price.
Costs that do not vary with changes in the number of units produced or sold.
Average Fixed Cost
The fixed cost per unit produced.
Costs that vary directly with changes in the number of units produced or sold.
Average Variable Cost
The variable cost per unit produced.
The sum of averaged fixed and average variable costs times the quantity produced.
Average Total Cost
The sum of the average fixed cost and the average variable cost.
Marginal Cost (MC)
The extra cost incurred by producing one more unit of a product.
Marginal Revenue (MR)
The change in total revenue resulting from the sale of an additional unit of a product.
The point at which the costs of producing a product equal the revenue made from selling the product.
Internal Reference Price
A price developed in the buyer's mind through experience with the product.
External Reference Price
A comparison price provided by others.
Concerned about price and quality of a product.
Striving to pay low prices.
Drawn to products that signify prominence and status.
Employing price differentials that injure competition by giving one or more buyers a competitive advantage.
Trade (functional) Discount
A reduction off the list price a producer gives to an intermediary for performing certain functions.
Deductions from the list price for purchasing in large quantities.
Quantity discounts aggregated over a stated time period.
One time price reductions based on the number of units purchased, the dollar value of the order, or the product mix purchased.
Price reductions given to buyers for prompt payment or cash payment.
A price reduction given to buyers for purchasing goods or services out of season.
A concession in price to achieve a desired goal.
Reductions for transportation and other costs related to the physical distance between buyer and seller.
The price of merchandise at the factory before shipment.
A price indicating the producer is absorbing shipping costs.
Uniform Geographic Pricing
Charging all customers the same price, regardless of geographic location.
Pricing based on transportation costs within major geographic zones.
Geographic pricing that combines factor price and freight charges from the base point nearest the buyer.
Freight Absorption Pricing
Absorption of all parts of actual freight costs by the seller.