Outcome # 3 // Considerations set up prices Flashcards
1
Q
Approaches to set up prices
A
Cost-based methods
Competitor -base methods
Value-based method
2
Q
Cost-based methods
A
Start with the Cost
Dont care about the role of consumers
Estimate on average cost
3
Q
Competitor -based methods
A
set prices to communicate consumers how the brand is set compared with the competition.
4
Q
Value-base method
A
the strategy set on the value perceived by the customer
Cust.value : compare benefits with the sacrifice
Value is subjective
5
Q
Improvement value method
A
Represents an estimate of how much more (or less) consumers are willing to pay for a product relative to other comparable products.
6
Q
Cost of ownership method
A
A value-based method for setting prices that determines the total cost of owning the product over its useful life.
