4.2 Vocabulary

Front

Applying a predetermined margin rate to the costs of all items to arrive at the price

Back

Markup pricing

Front

A pricing strategy where retailers set prices based on competition, either below or above

Back

Competitive pricing

Front

Using the manufacturer's suggested retail price (MSRP) to prevent competitive pricing wars

Back

Vendor pricing

Front

Choosing specific pricing numbers that appeal to customers, often ending in 5, 7, & 9

Back

Psychological pricing

Front

Doubling the cost of an item to determine its retail price

Back

Keystone pricing

Front

Selling a group or set of items for a single price, such as 3 for $5

Back

Multiple pricing

Front

Offering coupons, rebates, and other markdowns to attract customer traffic

Back

Discount pricing

Front

Targeting price-conscious shoppers by minimizing costs to keep prices low

Back

Economy pricing

Front

Setting a high price for innovation buyers, then lowering it to attract more customers

Back

Price skimming

Front

Selling multiple products or services together for a lower price than if purchased individually

Back

Bundle pricing