Chapter 11 Flashcards

1
Q

Fixed cost

A

When money dose not very with the number of units sold.

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2
Q

Example for a fixed cost

A

rent/utilities and insurance premiums

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3
Q

psychological pricing

A

based on the believe that customers perceptions of a product are strongly influenced by price.

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4
Q

example for a psychological pricing

A

used by retail pricing

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5
Q

prestige pricing

A

higher than average pricing that is used to suggest status and prestigious to the customer.

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6
Q

Example for prestige pricing

A

Since the shirt cost $100 the shirt has goos quality.

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7
Q

Odd even pricing

A

where old numbers are employed to suggest barons

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8
Q

Example for odd even pricing

A

$1.99

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9
Q

price lining

A

Items in certain category are priced the same.

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10
Q

Example for price lining

A

fruit snacks, the price will be determined based off of the other brands.

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11
Q

Promotional pricing

A

lower prices are offered for a limited period of time

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12
Q

Example for promotional pricing

A

Taco Tico promotes $.99 tocos for a limited time

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13
Q

Multiple- unit pricing

A

Items are priced in multiples

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14
Q

Example of multiple- unit pricing

A

buy 3 pairs off this for only $.99

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15
Q

Bundle pricing

A

several complimentary pieces are sold at a single price

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16
Q

Example for Bundle pricing

A

Computer companies

17
Q

Discount Pricing

A

offers customers reduction from original price to encourage discounts.

18
Q

Example for dicount pricing

A

percentage off of discounts

19
Q

2/10, net/30

A

the buyer can reduce selling experiences by 2% by paying in ten days. And if they don’t they need to pay in 30 days.

20
Q

Break Even Point

A

The gain from your business activity equals the cost included in presetting it.

21
Q

Example for a break even profit

A

It gives you an idea of the number of units you must sell to make a profit.

22
Q

Mark up

A

the amount added to the cost of an item to cover expenses.

23
Q

Mark down

A

the amount of money taken from the original price

24
Q

Example for a mark down price

A

Business sometimes may ned to mark down their product so that people will buy them.