Term
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Definition
| 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. p 291 |
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Term
| Customer value- based pricing |
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Definition
| Setting price based on buyers’ perceptions of value rather than on the seller’s cost. p 291 |
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Term
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Definition
| Offering just the right combination of quality and good service at a fair price. p 292 |
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Term
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Definition
| Attaching value- added features and services to differentiate a company’s offers and charging higher prices. p 293 |
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Term
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Definition
| Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk. p 295 |
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Term
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Definition
| Costs that do not vary with production or sales level. p 296 |
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Term
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Definition
| Costs that vary directly with the level of production. p 296 |
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Term
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Definition
| The sum of the fixed and variable costs for any given level of production. |
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Term
| Experience curve (learning curve) |
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Definition
| The drop in the average per- unit production cost that comes with accumulated production experience. p 297 |
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Term
| Cost- plus pricing (markup pricing) |
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Definition
| Adding a standard markup to the cost of the product. p 297 |
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Term
| Break-even pricing (target return pricing) |
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Definition
| Setting price to break even on the costs of making and marketing a product, or setting price to make a target return. p 297 |
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Term
| Competition-based pricing |
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Definition
| Setting prices based on competitors’ strategies, prices, costs, and market offerings. p 299 |
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Term
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Definition
| Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met. p 300 |
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Term
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Definition
| A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged. p 303 |
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Term
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Definition
| A measure of the sensitivity of demand to changes in price. p 304 |
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