Marketing

Exchange value of a good or service

Federal legislation prohibiting price discrimination not based on a cost differantial; also prohibits selling at an unreasonably low price to eliminate competition

State laws requiring sellers to maintain minimum price for comparable merchandise

Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product

Method of analyzing the relationship among costs, sales price, and increased sales volume

Point at which the additional revenue gained by increasing the price of a product equals the increase in total costs

Short-run or long-run pricing objectives of achieving a specified return on either sales or investment

Volume-related pricing objective in which the goal is to achieve control of a portion of the market for a firm's good or service

Research that discovered a strong positive relationship between a firm's market share and product quality and its return on investment

Pricing strategy emphasizing benefits derived from a product in comparison to the price and quality levels of competing offerings

Traditional prices that customers expect to pay for certain goods and servies

• 1. Supply and demand
• 2. Cost oriented analysis  

Schedule of the amounts of a firm's product that consumers will purchase at different prices during a specified time period

Schedule of the amounts of a good or service that firms will offer for sale at different prices during a specified time period

Market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price

Market structure involving a heterogeneous product and product differentation among competing suppliers, allowing the marketer some degree of control over prices

Market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors

Market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes

Costs that change with the level of production (such as labor and raw materials costs)

Costs that remain stable at any production level within a certain range (such as lease payments or insurence costs)

Costs calculated by dividing the sum of the variable and fixed costs by the number of units produced

Change in total cost that results from producing an additional unit of output

Measure of responsiveness of purchasers and suppliers to a change in price

Practice of adding a percentage of specified dollar amount-or markup- to the base cost of a product to cover unassigned costs and to provide a profit

Pricing method that uses all relevant variable costs in setting a product's price and allocates those fixed costs not directly attributed to the production of the priced item

Pricing method that attempts to use only cost directly attributable to a specific output in setting prices

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

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

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 (weekend hotel markup)