MCS 1000 Chapter Notes - Chapter 13: Value-Based Pricing, Demand Curve, Fixed Cost
13 Apr 2017
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Price: the money of other considerations (including other goods and services) exchanged for the ownership or use of a good or service. Barter: exchanging goods and services for other goods and services. Value pricing: increasing product or service benefits while maintaining or decreasing price. Profit = (unit price x quantity sold) total cost. Pricing constraints: factors that limit the latitude of price a firm may set. Pricing objectives: expectations that specify the role of price in an organization"s marketing and strategic plans. Demand curve: the summation of points representing the maximum number of products consumers will buy at a given price. Demand also depends on: consumer tastes, price and availability of other products, consumer income. Price of elasticity of demand: the percentage change in quantity demanded relative to a percentage change in price. Total revenue: the money received from the sale of a product. Step 3: estimating cost, volume, and profit relationships:
