price

price

the amount of money given to acquire a product or service

value proposition

the unique value a product or service provides to customers

list price

the established price normally quoted to potential buyers

selling price

the actual price a customer pays for a product after any discounts or coupons are deducted

manufacturer’s suggested retail price (MSRP)

the price recommended by the manufacturer

pricing objective

the goal that sellers hope to achieve in pricing products for sale

product life cyle

the four stages of sales and profit perfoemance through which all brands of a product progress: introduction, growth, maturity, and decline

break-even point

the point at which revenue form sales equals the costs of making and distributing the product

markup

the amount added to the cost of a product to determine its selling price

base price

the general price at which the company expects to sell the product

psychological pricing

the pricing technique of creating an illusion for customers

bait and switch

the practice of advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in the store

price discrimination

when a company sells the same product to different customers at different prices based on personal characteristics of the customers

deceptive pricing

the illegal pricing of products in a way that intentionally misleads customers

predatory pricing

the practice of setting very low prices to remove competition

loss leader

an item priced at or below cost to draw customers into a store

price gouging

raising prices on certain kinds of goods to an excessively high level during an emergency

price ceiling

maximum prices set by the government for certain goods and services that it thinks are being priced too high

price floor

minimum prices set by the government for certain goods and services that it thinks are being priced too low