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Price
the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service
Value-based Pricing
uses buyers’ perceptions of value, not sellers’ cost, as the key to pricing
Fixed Costs + Variable Costs = Total Costs
Cost Formula
Unit Cost x Gross Profit/Margin = Selling Price
Selling Price Formula
Price
only element in the marketing mix that revenue; all other produces elements represent costs
Price
easiest to adjust; other Ps requires and takes time and resources to modify
Price
not always computed on the basis of costs---on a branding standpoint
Price
communicates the brand value positioning