Chapter 10 Flashcards
___ refers to the amount of money charged for product or service
price
What sets the ceiling for a product price
customer perceptions of product value
What sets the floor for product prices
product costs
Pricing uses buyer perceptions of values as the key
customer value based
which of the following processing does value based pricing reverse?
Cost based pricing
The perceived value of different product value can be addressed by___
conducting surveys and experiments
Good value pricing
Refers to offering the right combination of quality and service at the right price
retailers such as Costco and Walmart with few or no discounts is an example of what type of pricing?
EDLP, Every Day Low Pricing
___pricing involves higher pricing everyday but with frequent promotions
high low pricing
___ involves setting prices based on cost plus a fair rate of return for effort and risk
cost based pricing
over head cost ___ as the number of units increases
stays the same (always)
Costs that change with the level of production are ___
variable costs
as production workers get more familiar, average cost per unit decreases with
accumulate production experience
