Marketing Objectives Review (Essig) – Final Exam

the amount of money charged for a product or service; the sum of the values that consumers exchange for the benefits of having and using the product or service

price is the only part of the marketing mix that generates revenue and it plays a key role in creating customer value and building customer relationships

uses buyers' perceptions of value as the basis for setting price

customer perceptions of product's value set the ceiling for prices

involves setting prices based on the costs for producing, distributing, and selling products plus a fair rate of return for effort and risk

company and product costs are an important consideration in setting prices; costs set the floor for pricing

cost-plus pricing and break-even pricing

involves setting prices based on competitors' strategies, costs, prices, and market offerings

consumers base their judgements of a product's value on the prices that competitors charge for similar products

example of how economic conditions can have a major impact on pricing decisions

response: increasing emphasis on value-for-the-money pricing strategies