Vocabulary

Question 1

Discount

Answer 1

Reduction in price that manufacturer producer gives

Question 2

Quantity Discount

Answer 2

Discount for paying more than 1

Question 3

Trade/Functional

Answer 3

Given to members of mkt channel (wholesalers / retailers) to reward them for the Function that they do
(From list price : price that customers have to pay)

Question 4

Everyday low prices

Answer 4

Ex: Walmart Ex: Walmart

Question 5

Seasonal discount

Answer 5

Get rid of inventory that are out of season

Question 6

Allowance

Answer 6

Credit when you buy something else

Question 7

Trade in allowance

Answer 7

trade old version for newer

most common: car

Question 8

Push-money

Answer 8

Distributor gives credit to run contests among sales people to push product

Question 9

Loyalty cards

Answer 9

you get points that you can redeem for dollars on your next purchase

Question 10

Coupons

Answer 10

get when you go buy something

Question 11

Rebate

Answer 11

invented to solve problem w. distributors
Distributors would pocket discount
So, customers buy product @ full price, then contact manufacturer for money back

Question 12

Geographical adjustments

Answer 12

Account for cost of shipping

Question 13

Bait Pricing

Answer 13

Illegal

Price very low, wo intentions of selling it at that price or at all

Question 14

Psychological pricing

Answer 14

use decimals if you want to give the Psychological image that it is a good value
NO decimals or 0’s if you want it to be viewed as a prestigious product