MCS 1000 Chapter Notes - Chapter 13: Price War, Monopolistic Competition, Flaked

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Arsenio Bonifacio

Document Summary

Price: the money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service. The practice of exchanging goods and services for other goods and services rather than for money is called barter. For most products and services, money is exchanged, although the amount is not always the same as the list or quoted price because of the discounts, allowances, and extra fees. From a consumer"s perspective, price is often used to indicate value when it"s compared with the benefits of the product. Value is the ratio of perceived benefits to price, at a given price, as perceived benefits increase, perceived value increases. Many marketers engage in value pricing, increasing product or service benefits while maintaining or decreasing price. Pricing is also a critical decision made by a marketing executive because price has a direct effect on a firm"s products.