BUSI 2210 Study Guide - Midterm Guide: Monopolistic Competition, Panera Bread, Learning Curve

• School: Memorial University
• Department: Business Administration
• Course: BUSI 2210
• Professor: Donna Stapleton

Document Summary

Sum of all values a customer exchanges for the benefit of having the product. Pricing strategies (3): customer value-based pricing, cost-based pricing, competition based pricing. Involves understanding how much value consumers place on benefits they receive from a product and setting a price that captures that. Definition: setting price based on buyers perceptions of value rather than on the sellers cost. The targeted price is what costs and product design is based on. Offering the right combo of quality and good service at a fair price. Edlp is charging constant everyday low prices with a few or no price discounts. Attaching value-added features and services to differentiate an offering and charging higher prices. Done instead of cutting prices to match competitors. Setting prices based on costs for producing, distributing, and selling the product plus fair rate of return for effort and risk. Fixed (overhead) costs: costs that do not vary with production. Variable costs: vary directly with level of production.