Marketing Chapter 10

fourth

Convincing buyers of a product's value is the __________ step in cost-based pricing.

What is value-added pricing?

Attaching value-added features and services to differentiate a company's offers and support higher prices

second

In cost-based pricing, determining product costs is the __________ step.

first

In value-based pricing, assessing customer needs and value perceptions is the __________ step in the process.

Total costs

__________ are the sum of the fixed and variable costs for any given level of production.

Customer value-based pricing

__________ is based on a buyer's perceptions of value rather than on the seller's cost.

Cost-based pricing

__________ is based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Good-value pricing

__________ is offering just the right combination of quality and good service.

fixed costs

Costs that do not vary with production or sales level

What is the second step in value-based pricing?

Setting a target price to match customer perceived value

third

Setting the price based on cost is the __________ step in cost-based pricing.

Target Costing

Which term refers to pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met?

Experience curve

Which term refers to the drop in the average per-unit product cost that comes with accumulated production experience?

Variable costs

__________ vary directly with the level of production.

Price is best defined as the __________.

amount of money charged for a product or service

In cost-based pricing, __________ is the first step.

designing a good product

A demand curve is a curve that __________.

shows the number of units the market will buy in a given time period, at different prices that might be changed

third

The __________ step in value-based pricing is determining the costs that can be incurred.

cost-plus pricing

The addition of a standard markup to the cost of the product is known as __________.

The fourth step

The __________ step in value-based pricing is designing products to deliver the desired value at the target price