Distinguish between value-based pricing and cost-based pricing
What will be an ideal response?
Customer value-based pricing uses buyers' perceptions of value as the key to pricing. Value-based pricing means that the marketer cannot design a product and marketing program and then set the price. Price is considered along with all other marketing mix variables before the marketing program is set.
Although costs are an important consideration in setting prices, cost-based pricing is often product driven. The company designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit. Marketing must then convince buyers that the product's value at that price justifies its purchase.
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The expression of what an organization wishes to accomplish and how it will serve its customers is contained in the ______________________________
Fill in the blank(s) with correct word
The ____________ principle is based on the belief that it is the employee’s responsibility to honor the commitments he or she has made to the firm.
a. Reliability b. Responsiveness c. Self-respect d. Transparency
According to Oliver (1990) organizations collaborate for six main reasons: Necessity, Asymmetry, Reciprocity, Efficiency, Stability, and Legitimacy. The reason organizations collaborate to gain respect and improve its image, such as Shell working with Greenpeace, is __________.
a. Asymmetry b. Stability c. Necessity d. Legitimacy
Users of the popular GPS app Waze periodically report driving conditions while on the road, allowing all users to benefit from live traffic updates. Waze is an example of crowdsourcing because:
a. users have free access to the same traffic information. b. users freely contribute traffic information for use by the app. c. the app has a very large and loyal user base. d. the app asks for donations at the end of each drive.