Lesson 11 Quiz

What is Customer Value- Based Pricing?

Attaching extra value-added features and services to differentiate a company's offers, thereby charging a higher price.

Offering the right combination of quality and good service at a fair price.

Setting price based on buyer's perceptions of value rather than cost

Setting Prices based on the cost of producing, distributing and selling a product + a fair rate of return for effort and risk.

What is Value-added Pricing?

Setting Prices based on the cost of producing, distributing and selling a product + a fair rate of return for effort and risk.

Attaching extra value-added features and services to differentiate a company's offers, thereby charging a higher price.

Offering the right combination of quality and good service at a fair price.

Setting price based on buyer's perceptions of value rather than cost

What are the two types of Value Based Pricing?

Value Added Pricing

Customer Value Pricing

Good Value Pricing

Cost Based Pricing

What is Cost based Pricing?

Attaching extra value-added features and services to differentiate a company's offers, thereby charging a higher price.

Offering the right combination of quality and good service at a fair price.

Setting Prices based on the cost of producing, distributing and selling a product + a fair rate of return for effort and risk.

Setting price based on buyer's perceptions of value rather than cost

What is the simplest pricing method and why?

Customer Based Pricing

Cost-Plus pricing

Value Based Pricing

Markup Pricing

What is the first step in Cost-Based Pricing?

Determine its costs

Set price based on costs

Design a good product

Convice buyers of value

What is the second step in Cost-Based Pricing?

Design a good product

Determine its costs

Set price based on costs

Convince buyers of value

WHat is the third step in Cost-Based Pricing?

Design a good product

Determine its costs

Set price based on costs

Convince buyers of value

What is the fourth step in Cost-Based Pricing?

Design a good product

Determine its costs

Set price based on costs

Convince buyers of its value

What is the first step in Value-Based Pricing?

Assess customer needs and value perceptions

Set target price to match customer perceived value

Determine costs that can be incurred

Design product to deliver value at target price.

What is the second step in Value-Based Pricing?

Assess customer needs and value perceptions

Determine costs that can be incurred

Design product to deliver value at target price.

Set target price to match customer perceived value

What is the third step in Value-Based Pricing?

Assess customer needs and value perceptions

Design product to deliver value at target price.

Determine costs that can be incurred

Set target price to match customer perceived value

What is the fourth step in Value-Based Pricing?

Assess customer needs and value perceptions

Design product to deliver value at target price.

Set target price to match customer perceived value

Determine costs that can be incurred

If a small change in price elicits little change in demand we say pricing is

Elastic

Inelastic

If a small change in price elicits a larger change in demand we say pricing is:

Elastic

Inelastic

Lesson 11 Quiz

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