Chapter 10

Question 1

price

Answer 1

the exchange something of value (the price) to get something of value (the benefits of having or using the product)

Question 2

customer value based pricing

Answer 2

setting price based on buyers perceptions of value rather than on the sellers cost

Question 3

everyday low pricing (EDLP)

Answer 3

charging a constant everyday low price with few or no temporary price discounts

Question 4

high-low pricing

Answer 4

involves charging higher prices on a everyday basis but running frequent promotions to lower prices temporarily on selected items

Question 5

value-added pricing

Answer 5

attaching value added features and services to differentiate a company’s offered and charging higher prices

Question 6

cost-based pricing

Answer 6

setting prices based on the costs of production plus a return

Question 7

cost-plus pricing

Answer 7

adding a standard mark-up to the cost of the product

Question 8

competition based pricing

Answer 8

setting prices based on competitors strategies, costs, prices and market offerings