Test 2 Flashcards
(16 cards)
What is Prestige Pricing?
Luxury or exclusive pricing.
What is Leader Pricing?
Brand name merchandise at a lower price.
What is Competitive Pricing?
Pricing comparable to competitors’ products.
What is Everyday Low Pricing (EDLP)?
Prices do not vary much; set at the lowest sale price and regular price of competitors.
What is High/Low Pricing?
Prices set above EDLP of competitors with special sales offered.
What is the right price for the consumer?
Value = quality and price.
What is the right price for the retailer?
Profit = covers the cost of the merchandise and operating expenses.
What is a price line/price point?
A specific predetermined price at which an item is offered for sale.
What is the price range?
The spread between the highest and the lowest price line offered for sale.
What is Price Lining?
The practice of predetermining the price lines or points at which an assortment of merchandise will be offered for sale.
What is a price zone?
A series of price lines that are close together and tend to appeal to a certain group of customers.
What is the purpose of markdowns?
Stimulating sales of low or inactive stock and providing funds for the purchase of new merchandise.
What is Markdown Money?
Covers lost gross margin resulting from markdowns.
What are chargebacks?
Charges to vendor for portions of the money the retailer has already paid for the goods.
What does Return to Vendors mean?
When brand merchandise does not sell, retailers may negotiate with vendors to return the merchandise.
What are jobbers?
Third parties that purchase the merchandise and resell it to off-price retailers, typically for smaller retailers.
