customary price

(noun)

A price that customers identify with particular items.

Related Terms

Examples of customary price in the following topics:

  • Psychological Pricing

    • Products and services frequently have customary prices in the minds of consumers.
    • A customary price is one that customers identify with particular items.
    • Candy bars now cost 60 cents or more, which is the customary price for a standard-sized bar.
    • Manufacturers tend to adjust their wholesale prices to permit retailers to use customary pricing.
    • Psychological pricing is one cause of price points.

  • The Grand Tour and Its Portraits

    • The Grand Tour was a customary trip to Europe undertaken by wealthy Europeans and some Americans.
    • The Grand Tour was a customary trip to Europe undertaken by wealthy Europeans and some Americans that flourished as a tradition from about 1660 to 1840.
    • Their popularity created an industry of sorts, and prices rose with the growth of the trend.

  • Women in Pre-Islamic Arabia

    • Under the customary tribal law existing in Arabia at the advent of Islam, as a general rule women had virtually no legal status.
    • Under the customary tribal law existing in Arabia before the rise of Islam, as a general rule women had virtually no legal status; fathers sold their daughters into marriage for a price, the husband could terminate the union at will, and women had little or no property or succession rights.

  • Prefixes and Other Systems of Units

    • The United States, for example, teaches and uses the United States customary units.
    • This system of units was developed from the English, or Imperial, unit standards of the United Kingdom.The United States customary units define measurements using different standards than those used in SI Units.
    • The system for measuring length using the United States customary system is based on the inch, foot, yard, and mile.
    • Units of mass are commonly defined in terms of ounces and pounds, rather than the SI unit of kilograms.Other commonly used units from the United States customary system include the fluid volume units of the teaspoon, tablespoon, fluid ounce, US cup, pint, quart, and gallon, as well as the degrees Fahrenheit used to measure temperature.
    • Apply prefixes to units and distinguish between SI and customary units

  • Glossary

    • Bull market: A market in which there is a continuous rise in stock prices.
    • Dow Jones Industrial Average: A stock price index, based on 30 prominent stocks, that is a commonly used indicator of general trends in the prices of stocks and bonds in the United States.
    • (This should not be confused with increases in the prices of specific goods relative to the prices of other goods. )
    • Price fixing: Actions, generally by a several large corporations that dominate in a single market, to escape market discipline by setting prices for goods or services at an agreed-on level.
    • Standard of living: A minimum of necessities, comforts, or luxuries considered essential to maintaining a person or group in customary or proper status or circumstances.

  • Length

    • In the United States, the U.S. customary units operationally describe length in terms of the basic unit of an inch.

  • Analysis of Price Discrimination

    • Price discrimination is present in commerce when sellers adjust the price on the same product in order to make the most revenue possible.
    • Second degree price discrimination: the price of a good or service varies according to the quantity demanded.
    • By using price discrimination, the seller makes more revenue, even off of the price sensitive consumers.
    • Premium pricing: uses price discrimination to price products higher than the marginal cost of production.
    • Gender based prices: uses price discrimination based on gender.

  • Competition-Based Pricing

    • Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for.
    • Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
    • For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
    • One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
    • Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.

  • Demand-Based Pricing

    • Demand-based pricing, also known as customer-based pricing, is any pricing method that uses consumer demand - based on perceived value - as the central element.
    • These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
    • Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
    • Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
    • By definition, long term prices based on value-based pricing are always higher or equal to the prices derived from cost-based pricing.

  • Price Ceilings

    • A price ceiling is a price control that limits how high a price can be charged for a good or service.
    • A price ceiling is a price control that limits the maximum price that can be charged for a product or service.
    • An example of a price ceiling is rent control.
    • By setting a maximum price, any market in which the equilibrium price is above the price ceiling is inefficient.
    • For a price ceiling to be effective, it must be less than the free-market equilibrium price.