Ch. 10 Pricing.docx - I What is Price? 1. Price: The amount...

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IWhat is Price?1.Price:The amount of money charged for a product or service, or the sumof the values that customers exchange for the benefits of having or using theproduct or service.2.The sum of all the values that customers give up gaining the benefits ofhaving or using a product or service3.Only element in the marketing mix that produces revenue; all otherelements represent costs. Also, one of the most flexibleIIMajor Pricing StrategiesA.B.Customer Value-Based Pricing1.When customers buy a product, they exchange something of value (theprice) to get something of value (benefits of having or using the product)2.Customer Value-based Pricing:Setting price based on buyer’sperceptions of value rather than on the seller’s cost.a)Marketers must consider price along with all other marketing mixvariables before they set a marketing program3.4.Pricing begins with analyzing consumer needs and value perceptions, andthe price is set to match perceived value.5.Good-Value Pricing:Offering just the right combination of quality andgood service at a fair price.a)Everyday low pricing (EDLP)involves charging a constant, everydaylow price with few or no temporary price discountsb)High-low pricinginvolves charging higher prices on an everydaybasis but running frequent promotions to lower prices temporarily onselected items6.Value-Added Pricing:Attaching value-added features and services todifferentiate a company’s offers and charging higher prices.

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Term
Spring
Professor
lydia clark
Tags
Marketing, Pricing, The Market

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