Chapter 10

Question 1

What is Customer value–based pricing ?

Answer 1

uses buyers’ perceptions of value as the key to pricing; means that the marketer cannot design a product and marketing program and then set the price

Question 2

What is Break-even pricing (target return pricing)?

Answer 2

Setting price to break even on the costs of making and marketing a product or setting price to make a target return.

Question 3

What is Cost-plus pricing (markup pricing)?

Answer 3

Adding a standard markup to the cost of the product.

Question 4

What is Target costing?

Answer 4

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