Value Creation Flashcards
the amount of money charged for a product or service
Price
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 and services to differentiate a company’s offers andto support charging higher prices
value -added pricing
setting prices to break even on the cost of making and marketing a product or setting prices to make target profit
Breakeven analysis and target profit pricing
7 pricing objectives
- Attract new customers
- profitably retain existing customers
- prevent competition from entering market
- stabilize the market
5.keep loyalty and support of resellers - Avoid government intervention
- Help sales of other products
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 consist of many buyers and seller who trade over a range of prices rather than a single market price. A range of prices occurs because Seller can differentiate their offeree to buyers
Monopolistic competition
This thmarket consists of a few sellers who are highly sensitive to each other’s pricing and marketing Strategies
Oligopolistic competition
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 strong impact on the firm’s pricing strategies
Economic conditions
