Kotler | Armstrong Marketing Chapter 10 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Price
answer
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service
question
Dynamic pricing
answer
Charging different prices depending on individual customers and situations
question
Target costing
answer
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
question
Fixed costs
answer
Costs that do not vary with production or sales level
question
Variable costs
answer
Costs that vary directly with the level of production
question
Total costs
answer
The sum of the fixed and variable costs for any given level of production
question
Experience curve (learning curve)
answer
The drop in the average per-unit cost that comes with accumulated production experience
question
Demand curve
answer
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
question
Price elasticity
answer
A measure of the sensitivity of demand to changes in price
question
Cost-plus pricing
answer
Adding a standard markup to the cost of production
question
Break-even pricing (target profit pricing)
answer
Setting price to break even on the costs of making and marketing a product, or setting price to make a target profit
question
Value-based pricing
answer
Setting price based on buyers' perceptions of value rather than on the seller's cost
question
Value pricing
answer
Offering just the right combination of quality and good service at a fair price
question
Competition-based pricing
answer
Setting prices based on the prices that competitors charge for similar products
