Glossary
Chapter 18: Pricing ConceptsJump to a chapter's terms: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24
- Allowance
- A concession in price to achieve a desired goal. p. 580
- Base point pricing
- A geographic pricing policy that includes the price at the factory, plus freight charges from the base point nearest the buyer. p. 580
- Cash discount
- A simple price reduction given to a buyer for prompt payment or payment in cash. p. 578
- Cumulative discounts
- Quantity discounts aggregated over a stated period of time. p. 578
- Economic value to the customer (EVC)
- The underlying principle that a premium price can be charged while still offering the customer better value than the competition. p. 582
- EDLP
- Everyday low pricing; budget savings passed on by the manufacturer to the consumer through reduced prices. p. 569
- F.O.B. destination price
- A price quotation indicating that the producer absorbs the costs of shipping the merchandise. p. 580
- F.O.B. factory price
- The price of the merchandise at the factory before it is loaded onto the carrier vehicle, which must be paid by the buyer. p. 580
- Financial price
- The basis of market exchanges; the quantified value of what is exchanged. p. 566
- Freight absorption pricing
- A pricing policy in which the seller absorbs all or part of the actual freight costs. p. 580
- Geographic pricing
- Pricing that involves reductions for transport costs or other costs associated with the physical distance between the buyer and the seller. p. 580
- Non-cumulative discounts
- One-off quantity discounts. p. 578
- Non-price competition
- A policy in which a seller elects not to focus on price but to emphasise other factors instead. p. 569
- Perceived value for money
- The benefit consumers perceive to be inherent in a product or service, weighed against the price demanded. p. 577
- Price
- The value placed on what is exchanged. p. 565
- Price competition
- A policy whereby a marketer emphasises price as an issue and matches or beats the prices of competitors. p. 568
- Price discrimination
- A policy in which different prices are charged in order to give a particular group of buyers a competitive edge. p. 581
- Pricing objectives
- Overall goals that describe what a company wants to achieve through its pricing efforts. p. 570
- Quantity discounts
- Reductions from the list price that reflect the economies of purchasing in large quantities. p. 578
- Seasonal discount
- A price reduction given to buyers who purchase goods or services out of season. p. 578
- Trade or functional discount
- A reduction off the list price given by a producer to an intermediary for performing certain functions. p. 578
- Transfer pricing
- The type of pricing used when one unit in a company sells a product to another unit within the same company. p. 580
- Uniform geographic pricing
- Pricing in which the same price is charged to all customers regardless of geographic location. p. 580
- Zone prices
- Regional prices that take advantage of a uniform pricing system. p. 580