3.1 Flashcards
Branding strategy
Carrying well-known brand names to attract customers who are loyal to those brands
Cost-plus pricing
Setting a price based on production cost plus markup
Cost-push inflation
Raising prices as a result of rising production costs
Deception
False or misleading claims made about the quality, price, or purpose of a product
Deflation
Decrease in the general level of prices for goods and services
Demand-pull inflation
Higher prices as a result of consumers wanting to buy more goods and services than producers supply
Direct advertising
Distribution of product information directly to consumers
Disinflation
Rising prices with the rate of increase slowing down
Economizing
Saving as much as possible and spending money only when necessary
Hyperinflation
Rapidly rising prices that are out of control
Inflation
Increase in the general level of prices for goods and services
Low-balling
Advertising a basic service at an unusually low price and then claiming additional repairs or services are needed
Market-based pricing
Setting prices to be competitive with prices of similar products currently being sold
Markup
The percentage a mount added to production cost to obtain the price of an idem
Normal profit
A profit that allows a business to survive and grow
Optimizing
Getting the highest value for the money spent
Pop-up ads
Internet ads that open a new window that pops onto the screen in front of the webpage being viewed
Rational buying
Process of selecting goods and services based on need, want, and logical choices
Real-cost inflation
Rising prices due to scarce resources or increased difficulty in obtaining resources
Space-shifting
Copying the contents from one form of media to another for personal use
Target audience
A specific group of people who are likely to buy the product
Time-shifting
Recording video or audio for later viewing or listening
Time value of money
A concept that says a dollar you receive in the future will be worth less than a dollar you receive today
Value-based pricing
Setting prices based on how much consumers are willing to pay
Advertising
Informing consumers about products and encouraging them to buy
