Marketing Exam 2 Set 4: PRICING

What role does price play in the marketing mix?

It’s the only element that produces revenue and the most flexible element.

What is value-based pricing?

Setting price based on buyers’ perceived value, not the seller’s cost.

What is good-value pricing?

Offering the right combination of quality and good service at a fair price.

What is cost-based pricing?

Setting price from the cost of producing, distributing, and selling, plus a fair return.

What is cost-plus pricing?

Adding a standard markup to the product’s cost.

Fixed vs. Variable costs?

Fixed don’t change with output (rent); variable change with output (materials).

What sets the price floor and ceiling?

Costs set the floor; customer perceived value sets the ceiling.