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19 Cards in this Set
- Front
- Back
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is the amount of money charged for a product or service |
Price |
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setting price based on buyers' perceptions of value rather than on the seller's cost |
Customer-Based Pricing |
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offering just the right combination of quality and good service at a fair price |
Good-value pricing |
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attaching value-added features and services to differentiate a company's offers and charging higher prices |
Value-Added Pricing |
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setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk |
Cost-Based Pricing |
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costs that do not vary with production or sales level |
Fixed Costs (Overhead) |
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costs that vary directly with the level or production |
Variable Costs |
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the sum of both fixed costs and variable costs for any given level of production |
Total Costs |
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the drop in the average per-unit production cost that comes with accumulated production experience |
Experience curve (learning curve) |
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adding a standard markup to the cost of the product |
Cost-plus pricing (markup pricing) |
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setting price to break even on the costs of making and marketing a product or setting price to make a target return |
Break-even pricing (target return pricing) |
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setting price based on competitors' strategies, , prices, costs, and market offerings |
Competition-Based Pricing |
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pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met |
Target Costing |
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the curve that shows the number of units the market will buy in a given time period, at different prices that might be charged |
Demand Curve |
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the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities |
Pure Competition |
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the market consists of many buyers and sellers who trade over a range of prices rather than one single market price |
Monopolistic Competition |
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the market consists of only a few large sellers |
Oligopolistic Competition |
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the market is dominated by one seller |
Pure Monopoly |
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a measure of the sensitivity of demand to changes in price |
Price Elasticity |
