Value Creation Flashcards
The amount of money charged for a product or service; the sum of the values that consumers exchange for the benefits of having or using the product or service.
Price
No demand above this price
Price Ceiling
No profits below this price
Price Floor
Offering just the right combination of quality and good service at a fair price.
Good-Value Pricing
Attaching value-added features and services to
differentiate a company’s offers and to support charging higher prices.
Value-added Pricing
Setting prices to break even on the costs of making and marketing a product, or setting prices to make a target profit.
Break-Even Analysis and Target Profit Pricing
Pricing that starts with an ideal selling
price and then targets costs that will ensure that the price is met.
Target Costing
This market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities.
Pure Competition
This market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A range of
prices occurs because sellers can differentiate their offers to buyers.
Monopolistic Competition
This market consists of a few sellers who are
highly sensitive to each other’s pricing and marketing strategies. There are few sellers because it is difficult for new sellers to enter the market.
Oligopolistic Competition
This market consists of one seller.
Pure Monopoly
can have a strong impact on the firm’s pricing strategies. Economic factors
such as boom or recession, inflation, and interest rates affect pricing decisions because they affect both consumer perceptions of the product’s price and value and the costs of producing a product.
Economic Conditions
What are the other External Factors?
Environment, Government, Resellers, Social Concerns
