Pricing and Distribution Vocab

Any strategy that creates an

impression in the mind of the

consumer

• Fixed Pricing

• One Price Policy

• Psychological Pricing

• Flexible Pricing

All customers pay the same

price for a product

• Flexible Pricing

• Bundle Pricing

• One Price Policy

• Price Lines

All the costs associated with running a business

• Cost of Production

• Mark Up Cost

• Pricing Strategies

• Operating Expenses

Costs necessary to get the goods into inventory and ready to sell.

• Operating Expenses

• Costs of Production

• Pricing Policy

• Return on Investment

The amount added to the cost in order to cover operating expense and to make a profit

• Costs of Production

• Mark Up

• Operating Expense

• Profit

Allows customers to negotiate within a price range

• One Price Policy

• Flexible Pricing Policy

• Price Lines

• Geographic Pricing

Setting high than average prices to suggest status and high quality

• Volume Pricing

• Odd-Even Pricing

• Promotions

• Prestige Pricing

Used to attract customers into stores

• Promotions

• Loss Leader Pricing

• Price Bundling

• Volume Pricing

Discounts for large quantity purchases. the more purchased the larger the discount

• Prestige Pricing

• Volume Pricing

• Everyday Low Prices

• Price Bundling

Marketing two or more products in a single package for a special price

• Price Bundling

• Promotions

• Odd-Even Pricing

• Loss Leader Pricing