Definition
Price is the formal ratio that indicates the quantity of money, goods or services needed to acquire a given quantity of goods or services – the amount a customer must pay to acquire a product. [1]
price tags on retail shelving display
Along with product, place, and promotion, price is one of the 4Ps of the marketing mix. [2]
Price sensitivity refers to the degree to which demand for a given product is affected by a change in its price. [2]
Price threshold refers to the lowest or highest price that customers are willing to pay for a particular good or service. [1]
Delivered price is a quoted or invoice price that includes delivery costs to the FOB point, the latter being a freight terminal, warehouse, or another location commonly accepted in the particular trade or specifically agreed upon between buyer and seller. [1]
Delivery duty paid is a contract under which the seller undertakes to deliver the goods to the buyer at the place he or she names in the country of import with all costs, including duties, paid. The seller is responsible under this contract for getting the import license if one is required.
Basing-point pricing is a variation of delivered pricing. The delivered price is the product‘s list price plus transportation from a basing point to the buyer. The basing point is a city where the product is produced; however, in basing-point pricing, the product may be shipped from a city other than the basing point. [1]
Billed cost is the price appearing on a vendor‘s bill before deducting cash discounts, but after deducting any trade discounts and quantity discounts from the list price.
See Also
Discount
Price discrimination
Price premium
Price per statistical unit
References
- American Marketing Association, AMA Dictionary.
- Govoni, N.A. Dictionary of Marketing Communications, Sage Publications. (2004)