MKTG 396 Lecture Notes - Lecture 11: Price Skimming, Target Costing, Demand Curve
Document Summary
The amount of money charged for a product or service; the sum of all values that customers exchange for the benefits of having or using the product or service. Setti(cid:374)g pri(cid:272)e (cid:271)ased o(cid:374) (cid:271)uyers" perceptions of value rather than on the seller"s (cid:272)ost. Offering the right combination of quality and good service at a fair price. Attaching value-added features a(cid:374)d ser(cid:448)i(cid:272)es to differe(cid:374)tiate a (cid:272)o(cid:373)pa(cid:374)y"s offers and charging higher prices. Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. Costs that do not vary with production or sales level. Costs that vary directly with the level of production. The sum of the fixed and variable costs for any given level of production. The drop in the average per-unit production cost that comes with accumulated production experience. Adding a standard markup to the cost of the product.
