MKT 337 Lecture Notes - Lecture 13: List Price, Value-Based Pricing, Price Equation
Document Summary
Price: the money or other considerations exchanged for the ownership or use of a product or service. Buyers are willing to spend extra fees than a higher listing price, so sellers use add- charges as a way of having the consumer pay more without raising the listing price. Barter: the practice of exchanging products and services for other products and services rather than for money. Price equation: final price = list price incentives and allowances + extra fees. To generate profit in today"s global marketplace, international firms look around the world to. Price and global marketplaces find both new market to increase revenues and suppliers whose efficiencies and lower hourly wages can reduce the prices the buying firms must pay. Price is often used to indicate value when it is compared with the perceived benefits such as quality, durability and so on. Value pricing: practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
