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13 Cards in this Set
- Front
- Back
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Price
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The sum of values that consumers exchange for a product or service
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Dynamic Pricing
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Charging different prices according to different consumers and situations
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Target Costing
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Pricing that starts with an ideal selling price, then targets costs tat will ensure that the price is met.
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Fixed Costs
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Costs that do not vary with production/sales level
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Variable Costs
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Costs that vary with production/sales level
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Total Costs
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Variable Costs plus Fixed Costs
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Experience Curve (learning curve)
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drop in the average per unit production cost that comes with accumulated production experience
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Demand Curve
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A curve that shows the number of units the market will buy in a given time period at different prices that might be charged.
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Price Elasticity
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Measure of sensitivity of demand to price (%change in demand / %change in price)
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Cost-plus pricing
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Setting price with this formula: Price= costs + standard markup
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Break-Even Pricing
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Setting price with this formula: Break even volume = Fixed Costs/(Price-Variable Costs)
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Value Pricing
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Offering just the right combination of quality and good service at a fair price.
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Competition-based pricing
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setting prices based on the prices that competitors charge for similar products.
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