A method of pricing a product in which the same product is supplied to different customers, or different market segments, at different prices. This approach is based on the principle that to achieve maximum market penetration, the price charged should be what a particular market will bear.
Dynamic pricing, also known as real-time pricing or surge pricing, is a strategy where the price of a product or service fluctuates based on market demands, customer segments, time, and other variable factors.
Financial control encompasses actions taken by the management of an organization to ensure that costs incurred and revenues generated are at acceptable levels. It involves the provision of financial information to management by accountants and utilizes techniques such as budgetary control and standard costing to highlight and analyze variances.
An income standard in standard costing refers to the predetermined level of income expected to be generated by an item to be sold. It is often applied to a budgeted quantity to determine the budgeted revenue.
A product or service offered for sale by an organization at a loss in order to attract customers for other products or services.
Rate setting refers to the establishment of utility rates by public service utility commissions to ensure fair pricing for consumers and sufficient revenue for the utility companies.
Revenue management, also known as yield management, employs sophisticated algorithms and data analysis to forecast demand and adjust pricing dynamically, optimizing revenue for industries with fixed and perishable resources.
Sales returns refer to goods that customers have returned to a business, usually due to defects or dissatisfaction. This can impact a company's revenue and inventory management.
Skimming can refer to either an illegal practice of failing to account for some sales or a marketing strategy involving high initial pricing for new products.
Variable pricing refers to a marketing strategy that allows different prices to be charged to different customers or at different times. This strategy is common among industries like airlines, hotels, and certain niche market sellers.
