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Value-Based Pricing
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Uses buyers perceptions of value, not seller's cost, as the key to pricing
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Value Added
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The enhancement a company gives its product or service before offering the product to customers so as to distinguish the product from its homogeneous competitors
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Good value pricing
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Any pricing strategy that tries to split value creation somewhat evenly between a firm and its customers. This is in contrast to raising prices as high as consumers will pay or pushing them as low as the company can afford
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Every Day Low Price (EDLP)
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A pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping
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Hi-Low Pricing
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A pricing strategy where a firm charges a high price for an item and later when the item's popularity has passed, sell it to customers by giving discounts or through clearance sales
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Cost-based pricing
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Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.
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Cost + pricing
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Pricing by adding a standard markup to the cost of the product
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Break-even pricing
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Pricing based on fixed costs, variable costs, and total revenues, and there is no profit or a target profit
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Competition based pricing
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Setting prices based on competitors strategies, prices, costs, and market offerings
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Elastic demand
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A situation in which consumer demand is sensitive to changes in price
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