Setting an initially high price for a product or service before competitors enter the market.

Setting a low price for a new product or service to attract customers.

Products in a category match or follow the prices of competitors closely.

Strategies like Leader Pricing, Price Lining, Everyday Low Prices, Super Sizing, Negotiated Pricing, Interest-Free Pricing, Combo Pricing, and Psychological Pricing.

Convenience, status, trends, competition, quality, costs, target customer spending, desired profit, sales volume, and urgency.

The price paid by the customer for a product.

The difference between the selling price and the cost of goods sold.

Costs that fluctuate based on production levels.

Costs that remain constant regardless of production levels.

The point where costs equal profits.

How products move from producers to customers through channels like railroad, containerization, parcel post, trucking, pipelines, water transport, and air transport.

Direct link between producer and consumer.

Involves intermediaries who take possession of goods, add mark-ups, and resell to consumers.

Hold exclusive rights to sell products in another country.

Final link in the distribution chain, selling goods and services to customers.

Buy products from sources and resell to retail stores or businesses, offering benefits like breaking bulk, warehousing, risk-bearing, financing, buying, transporting, managing, promoting, and providing market info.

Indirect distribution channels not involving retail stores.

Company makes a lot quickly so they can cover their costs quickly - before competition enters the market.

Since the product is new, the company may not be able to produce a lot yet. High prices create prestige but limit demand.

Once development costs are covered, the company can lower prices to compete aggressively with the new competitors

Competitors benefit from all the work done by the originating company (product development, marketing/consumer awareness, creating distribution networks, etc)

Competitors can launch their product at lower costs because their development costs are lower.

Floods the market quickly, making it difficult for competitors gain market share.

Creates high consumer demand so the company quickly recoups costs.

Competitors will have difficulty matching prices.

Consumer demand must be very accurately estimated in order to ensure costs are covered.

Company must be able to meet the demand. This is especially difficult for new companies who don't have the $$$ to produce a lot without established orders.

It is always difficult to raise prices. Customer do not like it and they may switch to the competition.