pricing strat Flashcards
It involves analyzing production costs, market demand, competition, and customer perceptions to find a price point
Pricing Strategy
Variability in production can affect pricing stability, especially in industries where raw materials are volatile
Cost Fluctuations
When businesses fail to account for all costs, companies may price products too low, leading to reduced profit margin
Underpricing
Setting prices too high based on cost alone, without considering market demand or customer value
Pricing
It refers to the internal drive or desire that compels consumers to take action, such as purchasing a product
Motivation
It shapes how consumers view products and brands, which directly influences their buying decisions-
Perceptions
A pricing strategy where the price of a product or service is determined by adding a specific amount to its production
Cost based pricing
This method is useful when other costs, such as marketing or research and development, are difficult to calculate.
-Cost-Plus Pricing
It’s used most often when launching new products or for one-time item production, like events or services
Break-Even Pricing
A simple cost-based method where the selling price of a product is calculated by adding predetermined markup to the cost
Markup- Pricing
is a business expense that remains unchanged, no matter how much a company grows its revenue or produces
Fixed Cost
Are the number you get when you add up ALL the fixed costs you need to pay to keep your business running
Total Fix Cost
Costs that fluctuate with the level of production. The more you produce, the higher the variable costs
Variable Cost
The additional cost incurred to produce an extra unit of a product and determine if producing it is profitable
Marginal Costs
It is how individuals or organizations select, buy, use, and dispose of goods and services to satisfy their needs an
Consumer Behavior
