Marketing Dynamics Price Vocab

Pricing an item much lower than the current market price or the cost of acquiring the product.

• law of diminishing marginal utility

• elastic demand

• loss leader

• price floors

Additional satisfaction gained by using one additional unit of the same product.

• price ceilings

• manufacturer's suggested retail price (MSRP)

• unit pricing

• marginal utility

A price that allows customers to compare the prices based on a standard unit of measure, such as a ounce or pound.

• unit pricing

• fixed expense

• law of diminshing marginal utility

• price ceilings

When the government sets minimum prices for certain goods and services that it thinks are being priced too low.

• price ceilings

• price floors

• price discridmination

• law of diminishing marginal utility

When the government sets maximum prices for certain goods and services it thinks are being priced too high.

• bait and switch

• unit pricing

• price ceilings

• price discrimination

Idea that consuming more units of the same product decreases the marginal utility from each unit.

• predatory pricing

• price-fixing

• law of diminishing marginal utility

• price floors

An expense that changes based on the activities of the business.

• marginal utility

• fixed expense

• variable expense

• price floors

Actual price paid for a product, after any discounts or coupons are deducted.

• loss leader

• value proposition

• manufacturer's suggested retail price (MSRP)

• selling price

Setting very low prices to remove competition, such as foreign companies that price their products below the same domestic ones to drive the domestic companies out of business.

• deceptive pricing

• elastic demand

• predatory pricing

• bait and switch

Demand for a product that is not affected by price.

• inelastic demand

• variable expense

• price-fixing

• price discrimination