ADM 2320 Lecture Notes - Lecture 11: Loss Leader, Geographical Pricing, Predatory Pricing
2 Dec 2016
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Chapter 11 pricing key terms (pg 372 end of chapter) Reference price: the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process. External reference price: a higher price to which the consumer can compare the selling price to evaluate the purchase (ex: showing both original price and sale price on the tag) Internal reference price: price information stored in the consumer"s memory that the person uses to assess a current price offering. Everyday low pricing: a strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, non-sale price and the deep-discount sale prices their competitors may offer. High/low pricing: a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases. Seasonal discount: pricing tactic of offering an additional reduction as an incentive to retailers to order merchandise in advance of the normal buying season.
