SCBUS123 Lecture Notes - Lecture 8: Price Ceiling, Price Floor

• School: University of Waterloo
• Department: Science and Business
• Course: SCBUS123
• Professor: Kashif Memon

Document Summary

Reduced invoice cost if buyer prior to the end of the discount period. Encourages buyers to pay before the discount period ends. Lowers the final cost in return for specific behaviour. Marketers establish a price floor and a price ceiling and set prices in between. Enticing consumers into the store with the popular aggressively priced item and hoping they will pick up items while shopping. Enable retailers to get rid of slow moving or obsolete merchandise. Encourage consumers to use services or purchase products year round.