Stanley J. Shapiro
Kenneth B. Wong,
Queens School of Business
William D. Perreault,
University of North Carolina
E. Jerome McCarthy,
Michigan State University
| 2/10, net 30 | Allows a 2-percent discount off the face value of the invoice if the invoice is paid within 10 days.
(See Refer to page(s) 547)
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| Administered prices | Consciously set prices aimed at reaching the firm's objectives.
(See Refer to page(s) 535)
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| Advertising allowances | Price reductions given to firms in the channel to encourage them to advertise or otherwise promote the firm's products locally.
(See Refer to page(s) 493, 549)
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| Allowances | Reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something.
(See Refer to page(s) 549)
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| Basic list prices | The prices that final customers or users are normally asked to pay for products.
(See Refer to page(s) 546)
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| Cash discounts | Reductions in the price to encourage buyers to pay their bills quickly.
(See Refer to page(s) 547)
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| Cumulative quantity discounts | Reductions in price for larger purchases over a given period, such as a year.
(See Refer to page(s) 546)
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| Discounts | Reductions from list price given by a seller to buyers, who either give up some marketing function or provide the function themselves.
(See Refer to page(s) 546)
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| Everyday low pricing | Setting a low list price rather than relying on a high list price that frequently changes with various discounts or allowances.
(See Refer to page(s) 548)
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| F.O.B | A transportation term meaning free on board some vehicle at some place.
(See Refer to page(s) 551)
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| Flexible-price policy | Offering the same product and quantities to different customers at different prices.
(See Refer to page(s) 537)
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| Freight absorption pricing | Absorbing freight cost so that a firm's delivered price meets the nearest competitor's.
(See Refer to page(s) 551)
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| Introductory price dealing | Temporary price cuts to speed new products into a market.
(See Refer to page(s) 543)
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| Market share objective | States a specified share (percentage) of a market that is desired.
(See Refer to page(s) 534)
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| Net | An invoice term meaning that payment for the face value of the invoice is due immediately.
(See Refer to page(s) 547)
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| Noncumulative quantity discounts | Reductions in price when a customer purchases a larger quantity on an individual order.
(See Refer to page(s) 546)
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| Nonprice competition | Aggressive action on one or more of the Ps other than price.
(See Refer to page(s) 534)
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| One-price policy | Offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.
(See Refer to page(s) 536)
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| Penetration pricing policy | Trying to sell the whole market at one low price.
(See Refer to page(s) 542)
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| Price | The amount of money that is charged for something of value.
(See Refer to page(s) 531)
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| Price fixing | Competitors illegally getting together to raise, lower, or stabilize prices.
(See Refer to page(s) 552)
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| Profit maximization objective | An objective to get as much profit as possible.
(See Refer to page(s) 533)
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| Push money (or prize money) allowances | Allowances (sometimes called PMs or spiffs) given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items.
(See Refer to page(s) 549)
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| Quantity discounts | Discounts offered to encourage customers to buy in larger amounts.
(See Refer to page(s) 546)
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| Rebates | Refunds to consumers after a purchase.
(See Refer to page(s) 550)
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| Sale price | A temporary discount from the list price.
(See Refer to page(s) 548)
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| Sales growth objective | Seeks to emphasize growth without regard for the growth rate of competitive products.
(See Refer to page(s) 533)
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| Sales-oriented objective | An objective to get some level of unit sales, dollar sales, or share of market, without referring to profit.
(See Refer to page(s) 533)
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| Seasonal discounts | Discounts offered to encourage buyers to buy earlier than present demand requires.
(See Refer to page(s) 547)
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| Skimming price policy | Trying to sell the top of the market-the top of the demand curve-at a high price before aiming at more price-sensitive customers.
(See Refer to page(s) 541)
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| Status quo objectives | [quote]don't-rock-the-pricing-boat[quote] objectives.
(See Refer to page(s) 534)
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| Stocking allowances | Allowances given to intermediaries to get shelf space for a product-sometimes called slotting allowances.
(See Refer to page(s) 549)
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| Target return objective | A specific level of profit as an objective.
(See Refer to page(s) 532)
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| Trade (functional) discount | A list-price reduction given to channel members for the job they are going to do.
(See Refer to page(s) 548)
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| Trade-in allowance | A price reduction given for used products when similar new products are bought.
(See Refer to page(s) 550)
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| Uniform delivered pricing | Making an average freight charge to all buyers.
(See Refer to page(s) 551)
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| Value pricing | Setting a fair price level for a marketing mix that really gives the target market superior customer value.
(See Refer to page(s) 553)
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| Zone pricing | Making an average freight charge to all buyers within specific geographic areas.
(See Refer to page(s) 551)
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2002 McGraw-Hill Higher Education