CUL 129 CHAPTER 5 ALREADY PASSED

CUL 129 CHAPTER 5 ALREADY PASSED What refers to deductions offered after a purchase has been made at the normal selling price, sometimes referred to as cash-back offers? Rebates What is the purpose of a predetermined fallback position in negotiation? Where negotiation on specific point might be concluded—concessions one is willing to make How can it be fair for different customers to pay different prices for the same product? Quantity discount is based on volume purchasing and is common practice What refers to the buyer's view of pricing that assumes that vendors have carefully evaluated their own costs and determined a selling price low enough to attract customers and high enough to cover costs and provide a reasonable profit? Traditional view of pricing Why can a service feature from a vendor justify a higher price from a purchaser? It has value for the operation that is worth the price Why are "cherry pickers" serviced last? The buyer failed to consider anything but price What is the desired outcome for negotiation? Reach an agreement that benefits each party What does the concept of "value perception" have to do with selling price? Customers' opinion that determines what they are willing to pay When a purchaser considers what they pay, what does the concept "Prices reflect costs" refer to? Vendors must make a fair profit on what they sell Why would a vendor require cash on delivery? The buyer has been consistently slow to pay What is the difference between a discount and a price reduction? A reduction is offered to all customers; a discount to select customers What role does the government play in pricing? Utilities and, in some states, alcohol What kind of "homework" will the purchaser need to do before negotiations? Obtain best estimates of what is needed during period addressed What three components are being purchased from the vendor? Product, service, and information How should the negotiation session conclude? Review of major points and agreement upon expectations What role do arguments play in negotiation meetings? They are never helpful; seek constructive solutions What is meant by the phrase "going in positions"? Prioritization of desired outcomes How could knowledge of body language assist in a negotiation? It is helpful in reading thoughts and feelings What can provide a solid foundation for negotiations? Common-ground agreement or shared interest of negotiating parties Does scarcity (or lack of supply) always justify increased price? No; there could be lack of interest or value in a scarce item What refers to the total amount of a product or service that buyers want to purchase at a specific price? When products are in limited supply, prices will generally be high. If scarcity is not an issue, it may be simply consumers' willingness to pay. Demand What traits characterize the best negotiators? Problem solvers, decision makers, and able to spot shortcomings in logic used in negotiation A requirement that a buyer pay the full amount owed in cash or other acceptable payment form at the time products are delivered Cash On Delivery (COD) A buyer who requests bids from several vendors and then buys only those items each vendor has on sale or for the lowest price Cherry Picker A deduction from the normal price that is paid for something Discount An alternative position that is not the buyers first choice in negotiation Fall Back Position A process by which parties with mutual interests try to reach an agreement about something Negotiation A situation in which the prices paid for products and services are determined by the vendor and the buyer who voluntarily enter into a contract Free Market The total or per unit amount paid for something after all discounts have been applied to the original purchase price Net Price A position that prioritizes the desired outcomes from a negotiation session Going-in Position (negotiation) The weight, volume, or container size in which a food product is normally purchased Purchase Unit (PU) A deduction offered after a purchase has been made at the normal selling price; also referred to as a "cash back" offer Rebate The customer's opinion of a product's value to him or her Value Perception Charging different customer's different prices for the same product such as, for example, giving a discount for purchasing larger quantities Differential Pricing the total amount of a product or service that buyers want to purchase at a specific price Demand