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steps of value based pricing

1. Assess customer needs and value perceptions 2. Set target price to match customer perceived value 3. Determine costs that can be incurred 4. Design product to deliver desired value at target price

___________ shows the number of units demanded by the market in a given time period at different prices.

A demand curve

__________ is setting a price for a product that must be used with the main product.

Captive- product pricing

__________ is setting price based on customers perception of the product.

Customer value based pricing

The new product pricing strategy of ______ means the initial price is set high.

Market Skimming Pricing

_________ is setting a low price for a product in order to catch a large market share.

Market penetration pricing

__________ is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.

Price

__________ is a measure of the sensitivity of demand to changes in price.

Price Elasticity

__________ is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.

Product line pricing

With ________, the price is used to say something about the product.

Psychological Pricing

__________ is the second step in value-based pricing.

Setting a target price to match the customer's perceived value.

__________ is attaching features and services to differentiate a company's offers and charging higher prices.

Value added pricing