Week 7 - Pricing Flashcards
1
Q
What is customer value based pricing?
A
using the buyers’ perception of value as the key to pricing, rather than the sellers cost.
2
Q
What is target costing?
A
begins with an ideal selling price based on customer value, and then target different costs to make sure the price is met without sacrificing profits.
3
Q
What is the demand curve?
A
a curve that shows the number of units the market will buy in a given point of time at different prices
4
Q
What is price elasticity?
A
a measure of sensitivity of demand, to changes in price
