Marketing Ch. 10

Front 1

Price

Back 1

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.

Front 2

Customer value-based pricing

Back 2

Setting price based on buyers' perceptions of value rather than on the seller's cost.

Front 3

Good-value pricing

Back 3

Offering just the right combination of quality and good service at a fair price.

Front 4

Value-added pricing

Back 4

Attaching value-added features and services to differentiate a company's offers and charging higher prices.

Front 5

Cost-based pricing

Back 5

Setting prices on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Front 6

Fixed costs (overhead)

Back 6

Costs that do not vary production or sales level.

Front 7

Variable Costs

Back 7

Costs that vary directly with the level of production.

Front 8

Total costs

Back 8

The sum of the fixed and variable costs for any given level of production.

Front 9

Experience curve (learning curve)

Back 9

The drop in the average per-unit production cost that comes with accumulated production experience.

Front 10

Cost-plus pricing (markup pricing)

Back 10

Adding a standard markup to the cost of the product.

Front 11

Break-even pricing (target return pricing)

Back 11

Setting price to break oven on the cost of making and marketing a product, or setting price to make a target return.

Front 12

Competition-based pricing

Back 12

Setting prices based on competitors' strategies, prices, costs, and market offerings.

Front 13

Target costing

Back 13

Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.

Front 14

Demand Curve

Back 14

A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.

Front 15

Price elasticity

Back 15

A measure of the sensitivity of demand to changes in price.