MKT-3050 Chapter Notes - Chapter 10: Fixed Cost, Profit Margin, Pampers
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Chapter 10 price: what is the value proposition worth: price is the assignment of value, or the amount the consumer must exchange to receive the offering. Includes money, goods, services, favors, votes, or anything else that has value to the other party; can be nonmonetary. Lecture notes: when you think of price, you probably think of the amount of money you have to pay to purchase a product enjoy a service. Price certainly includes the cost of an item, but it also includes other things that must be exchanged as part of a transaction as well. For example, many international business transactions are characterized by various forms of (cid:271)a(cid:396)te(cid:396) o(cid:396) (cid:272)ou(cid:374)te(cid:396)t(cid:396)ade that do(cid:374)(cid:859)t i(cid:374)(cid:448)ol(cid:448)e a(cid:374) e(cid:454)(cid:272)ha(cid:374)ge of (cid:373)o(cid:374)e(cid:455) at all. Fo(cid:396) e(cid:454)a(cid:373)ple, thi(cid:374)k a(cid:271)out the (cid:862)p(cid:396)i(cid:272)e(cid:863) that (cid:373)ust (cid:271)e paid by an individual for a two week-long vacation at an all-inclusive resort. Discussion note: students may need some prompting to realize that there could also be a substantial opportunity cost.
