MARK 201 Chapter Notes - Chapter 10: Comparison Shopping Website, Dynamic Pricing, Geographical Pricing
14 Dec 2016
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Price: the amount of money charged for a product or service, or the sum of the values that customers exchange for the bene ts of having or using the product or service. Customer value based pricing: setting price based on buyers" perceptions of value rather than on the seller"s cost. Good value pricing: offering just the right combination of quality and good service at a fair price. Value-added pricing: attaching value-added features and services to differentiate a company"s offers and charging higher prices. Cost-based pricing: setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. Cost-plus pricing (or mark-up pricing): adding standard mark-up to the cost of the production. Break-even pricing (or target return pricing): setting price to break even on the costs of making and marketing a product, or setting price to make a target return.
