Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
40 Cards in this Set
- Front
- Back
Mark Up
|
a dollar amount added to the cost of products to get the selling price
|
|
Mark Up Percent
|
The percentage of selling price that is added to the cost to get the selling price
|
|
Mark Up Chain
|
The sequence of markups firms use at diff levels in a channel- determining the price structure in the whole channel
|
|
Stockturn Rate
|
The number of times the average inventory is sold during a year
|
|
Avg. cost per unit
|
The total cost divided by the related quantity
|
|
Avg fixed cost per unit
|
The total fixed cost divided by the realted quantity
|
|
Avg. variable cost per unit
|
The total variable cost divided by the related quantity
|
|
Target Return Pricing
|
Pricing to cover all costs and achieve a target return
|
|
Long Run Target Return Pricing
|
Pricing to cover all costs and over the long run achieve an average target return
|
|
Break Even Analysis
|
An approach to determine whether the firm will be able to break even- that is cover all its costs with a particular price
|
|
Break Even Point
|
The sales quantity where the firm's total cost will just equal its total revenue
|
|
Fixed Cost Contribution Per Unit
|
The selling price per unit minus the variable cost per unit
|
|
Marginal Analysis
|
Evaluating the change in total revenue and total cost from selling one more unit to find the most profitable price and quantity
|
|
Marginal Revenue
|
The change in total revenue that results from the sale of one more unit of a product
|
|
Marginal Cost
|
The change in total cost that results from producing one more unit
|
|
Rule for maximizing profit
|
The highest profit is earned at the price where marginal cost is just less than or equal to marginal revenue
|
|
Marginal Profit
|
Profit on the last unit sold
|
|
Price Leader
|
A seller who sets a price that all others in the industry follow
|
|
Break Even Point
|
The sales quantity where the firm's total cost will just equal its total revenue
|
|
Value in use Pricing
|
Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used
|
|
Reference Price
|
The price a consumer expects to pay
|
|
Fixed Cost Contribution Per Unit
|
The selling price per unit minus the variable cost per unit
|
|
Marginal Analysis
|
Evaluating the change in total revenue and total cost from selling one more unit to find the most profitable price and quantity
|
|
Marginal Revenue
|
The change in total revenue that results from the sale of one more unit of a product
|
|
Marginal Cost
|
The change in total cost that results from producing one more unit
|
|
Rule for maximizing profit
|
The highest profit is earned at the price where marginal cost is just less than or equal to marginal revenue
|
|
Marginal Profit
|
Profit on the last unit sold
|
|
Price Leader
|
A seller who sets a price that all others in the industry follow
|
|
Value in use Pricing
|
Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used
|
|
Reference Price
|
The price a consumer expects to pay
|
|
Bait Pricing
|
Setting some very low prices to attract the customers but tyring to up sell them ..trade up
|
|
Psychological Pricing
|
Setting prices that have special appeal to target customers
|
|
Odd - even Pricing
|
Setting prices that end in certain numbers
|
|
Price lining
|
Setting a few price levels for a product line and then marking all items at these prices
|
|
Demand - backward pricing
|
Setting an acceptable final consumer price and working backward to what a producer can charge
|
|
Prestige Pricing
|
Setting a rather high price to suggest high quality or value
|
|
Full Line Pricing
|
Setting Prices for a whole line of products
|
|
Complementary Product Pricing
|
Setting prices on several related products as a group
|
|
Product Bundling Pricing
|
Setting one proce for a set of products
|
|
Bid Pricing
|
Offering a specific price for each possible job rather than setting a price that applies for all customers
|