Chapter 5 Vocab Flashcards
A company that has exclusive control over a product, services, or geographic market.
Monopoly
A fringe benefit contingent on the occurrence of some future event.
Bonus
A pricing strategy in which the company sets its initial selling price high in an attempt to appeal to those individuals who want to be the first to have the product and who are not concerned about price.
Skimming pricing
A pricing strategy where the company attempts to set a selling price for the life of the product based on its total life-cycle costs.
Life-cycle pricing
A pricing strategy where the company first determines the selling price of the product and then decides whether to enter the market.
Target pricing
A pull system that uses cards to visually signal the need for inventory.
Kanban system
A reduced purchase price due to the amount purchased.
Quantity discount
A small amount of inventory kept on hand to avoid stockouts.
Safety stock
An additional amount over cost that is added to determine selling price.
Markup
An environment in which there are many companies whose products/services are similar but not identical.
Monopolistic competition
An environment where a few firms control the types of products and services and their distribution.
Oligopoly
An environment where a large number of sellers produce and distribute virtually identical products and services.
Pure competition
Payment for services rendered based on a fixed amount per period.
Salary pay
Payment for services rendered based on a percentage of revenue generated.
Commission pay
Payment for services rendered based on the number of hours worked.
Hourly pay
