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Definition
| 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 |
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Definition
| setting price based on buyers' perceptions of value rather than on the seller's cost |
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| offering just the right combination of quality and good service at a fair price |
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Definition
| attaching value-added features and services to differentiate a company's offers and charging higher prices |
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Definition
| setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk |
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Definition
| costs that do not vary with production or sales level |
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Term
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Definition
| costs that vary directly with the level of production |
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Term
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Definition
| the sum of the fixed and variable cots for any given level of production |
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Term
| experience curve (learning curve) |
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Definition
| the drop in the average per-unit production cost that comes with accumulated production experience |
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Term
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Definition
| adding a standard markup to the cost of the product |
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Term
| break-even pricing (target profit pricing) |
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Definition
| setting price to break even on the costs of making and marketing a product, or setting price to make a target profit |
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Term
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Definition
| pricing that starts with an ideal selling price, the targets costs that will ensure that the price is met |
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Term
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Definition
| a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged |
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Term
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Definition
| a measure of the sensitivity of demand to changes in price |
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