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Define + Lists
Chapter 10
16
Marketing
Undergraduate 4
11/03/2007

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Term
Price
Definition
The amount of money charged for a product or service, or the sum of the values that consumers exhange for the benefits of having or using the product or service.
Term
Dynamic Pricing
Definition
Charging different prices sepends on individual customer and situations. (kind of like ebay, where you will only pay what you think its worth)
Term
Target Costing
Definition
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
Term
Fixed Costs
Definition
Costs that do not vary with production or sales level
Term
Variable Costs
Definition
Costs that vary directly with the level of production
Term
Total Costs
Definition
The sum of the fixed and variable costs for any given level of production
Term
Experience Curve (learning curve)
Definition
The drop in the average pre-unit production cost that comes with accumulated production experience.
Term
Demand Curves
Definition
A curve that shows the number of units that market will buy in a given time period, at different prices that might be charged.

Elastic V. inelastic
Term
Price Inelasticity
Definition
A measure of the sensitivity of demand to changes in price.

= % in quantity demanded / % change in price
Term
Cost-Plus pricing
Definition
Adding a standard mark up to the cost of the product.

(Odell said that a contract that is Cost plus is a contract allowing someone to rape you.) ANYamount + 10%
Term
Break-even pricing
(target profit pricing)
Definition
Setting price to break even on the cost of making and marketing a product; or setting a price to make a target profit.
Term
Know the difference between Cost-based and Value-Based pricing.
Definition
(p.322)
Term
Value based pricing
Definition
Setting price based on buyers' preceptions of value rather than on the sellers cost.
Term
Value pricing
Definition
Offering just the right combination of quality and good service at a fair price.
Term
Competition-based pricing
Definition
Setting priced based on the priced that competitor charge for similar products.
Term
...is a dork
Definition
Scott
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