That which is given up in an exchange to acquire a good or service.

The price charged to customers multiplied by the number of units sold.

Revenue minus Expenses

Objectives that include profit maximization, satisfactory profits, and target return on investment.

Net Profit after taxes divided by total assets. Can predetermine desired level of profitability.

Pricing objective based either on market share or on dollar or unit sales.

A company's product sales as a percentage of total sales for that industry

A pricing objective that maintains existing prices or meets the competition's prices.

The quantity of a product that will be sold in the market at various prices for a specified period.

The quantity of a product that will be offered to the market by a supplier at various prices for a specified period.

The price at which demand and supply are equal.

Consumers' responsiveness or sensitivity to changes in price.

A situation in which an increase or a decrease in price will not significantly affect demand for the product.

A cost that varies with changes in the level of output.

A cost that does not change as output (production) increases or decreases.

The change in total costs associated with a one unit change in output.
The cost of that next unit produced.

The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for.

The practice of marking up prices by 100% or doubling the cost.

A method of determining what sales volume must be reached before total revenue equals total costs.

A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.

A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.

A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market.

An agreement between two or more firms on the price they will charge for a product.