MARK301 Final: Chapter 10
Document Summary
There are 2 types of value based pricing: g o o d value pricing: offering just the right combination of quality and good service at a fair price, value added pricing: is attaching value added features and services to differentiate a company"s offers and charging higher prices, cost based pricing (cid:224) cost based pricing is setting prices based on costs for producing, distributing, and selling the product plus a fair rate of return for effort. & risk. (cid:224) companies that have loser costs can set lower prices that result in smaller margins but greater sales and profits: the key is to manage the spread between costs and prices how much the company makes for the customer value it delivers, types of costs, fixed costs (overhead) are costs that do not vary with production or sales level, variable costs are costs that vary directly with the level of production. (cid:224)