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