CHAPTER 9, MARKETING, AN INTRODUCTION; ARMSTRONG AND KOTLER 2024/2025 WITH 42 QUESTIONS AND CORRECT ANSWERS RATED A+

CHAPTER 9, MARKETING, AN INTRODUCTION;
ARMSTRONG AND KOTLER 2024/2025 WITH 42
QUESTIONS AND CORRECT ANSWERS RATED
A+


Price - ANSWER-The amount of money charged for a product or service, or the
sum of the values that customers exchange for the benefits of having or using the
product or service



major pricing strategies - ANSWER-1. customer value-based pricing

2. coat-based pricing

3. competition-based pricing



Customer value-based pricing - ANSWER-based on buyers' perceptions of value
rather than on the seller's cost



EX:

- Good-value pricing - Value-added pricing

Good-value pricing - ANSWER-Offering just the right combination of quality and
good service at a fair price



Value-added pricing - ANSWER-Attaching value-added features and services to
differentiate a company's offers and charging higher prices

, Cost-based pricing - ANSWER-Setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for effort and risk



Types of costs:

1. Fixed cost (overhead)

2. Variable costs

3. Total costs



Fixed costs (overhead) - ANSWER-Costs that do not vary with production or sales
level



Variable costs - ANSWER-Costs that vary directly with the level of production



Total costs - ANSWER-The sum of the fixed and variable costs for any given level
of production



Types of cost baed pricing - ANSWER-1. Cost-plus pricing (markup pricing)

2. Break-even pricing (target return pricing)



Cost-plus pricing (markup pricing) - ANSWER-Adding a standard markup to the
cost of the product