Exchange value of a good or
service.
Federal legislation prohibiting
price discrimination that is not based on a cost differential; also prohibits
selling at an unreasonably low price to eliminate competition.
State laws requiring sellers to
maintain minimum prices for comparable merchandise.
Statutes enacted in most states
that permit manufacturers to stipulate a minimum retail price for a product.
Point at which the additional
revenue gained by increasing the price of a product equals the increase in
total costs.
Short&-run or long&-run
pricing objectives of achieving a specified return on either sales or
investment.
(PIMS) project Research that
discovered a strong positive relationship between a firm's market share and its
return on investment.
In pricing strategy the
traditional prices that customers expect to pay for certain goods and services.
Schedule of the amounts of a
firm's product that consumers will purchase at different prices during a
specified time period.
Schedule of the amounts of a
good or service that a firm will offer for sale at different prices during a
specific time period.
Market structure characterized
by homogeneous products in which there are so many buyers and sellers that none
has a significant influence on price.
Market structure involving a
heterogeneous product and product differentiation among competing suppliers,
allowing the marketer some degree of control over prices.
Market structure involving
relatively few sellers and barriers to new competitors due to high start&-up
costs.
Market structure involving only
one seller of a good or service for which no close substitutes exist.
Measure of responsiveness of
purchasers and suppliers to a change in price.
Practice of adding a percentage
of specified dollar amount (markup) to the base cost of a product to cover
unassigned costs and to provide a profit.
Pricing technique used to
determine the number of products that must be sold at a specified price in
order to generate revenue to cover total cost.
Pricing technique used to
evaluate consumer demand by comparing the number of products that must be sold
at a variety of prices in order to cover total cost with estimates of expected
sales at the various prices.
