question
price
answer
the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service
question
Customer value-based pricing
answer
setting price based on buyers' perceptions of value rather than on the seller's cost
question
cost-based pricing
answer
1. Design a good product
2. Determine product costs
3. Set price based on cost
4. Convince buyers of product's value
2. Determine product costs
3. Set price based on cost
4. Convince buyers of product's value
question
value-based pricing
answer
1. Assess customer needs and value perceptions
2. Set target price to match customer perceived value
3. Determine costs that can be incurred
4. Design product to deliver desired value at target price
2. Set target price to match customer perceived value
3. Determine costs that can be incurred
4. Design product to deliver desired value at target price
question
Good-value pricing
answer
offering just the right combination of quality and good service at a fair price
question
Value-added pricing
answer
attaching value-added features and services to differentiate a company's offers and charging higher prices
question
cost-based pricing
answer
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
question
Fixed costs (overhead)
answer
costs that do not vary with production or sales level
question
variable costs
answer
costs that vary with the quantity of output produced
question
total costs
answer
the sum of the fixed and variable costs for any given level of production
question
experience curve (learning curve)
answer
the drop in the average per-unit production cost that comes with accumulated production experience
question
Cost-plus pricing (markup pricing)
answer
adding a standard markup to the cost of the product
question
Break-even pricing (target return pricing)
answer
setting price to break even on the costs of making and marketing a product, or setting price to make a target return
question
competition-based pricing
answer
setting prices based on competitors' strategies, prices, costs, and market offerings
question
target costing
answer
pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
question
pure competition
answer
consists of many buyers and sellers trading in uniform commodity, such as wheat, copper, or financial securities
question
monopolistic competition
answer
consists of many buyers and sellers trading over a range of prices rather than a single market price
question
oligopolistic competition
answer
market consists of only a few large sellers
question
pure monopoly
answer
market is dominated by one seller
question
demand curve
answer
a curve that shows the relationship between the price of a product and the quantity of the product demanded
question
price elasticity
answer
a measure of the sensitivity of demand to changes in price
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
