Pricing- DECA| 55 QUESTIONS | WITH COMPLETE SOLUTIONS

Price Correct Answer: Money charged for product/service Price floor Correct Answer: Minimum price for product Price ceiling Correct Answer: Highest price for product External factors to consider Correct Answer: Competitions strategy and prices; marketing strategy, objectives, and mix; nature of market and demand 3 major pricing strategies Correct Answer: Customer value based pricing, cost based pricing, competition based pricing Customer value based pricing Correct Answer: Customer determines if price is right Types of value-based pricing Correct Answer: Good-value Pricing, and value-added pricing Good-Value Pricing Correct Answer: Offering right combination of quality and service at fair price Value-Added Pricing Correct Answer: Attaching additional value added features and services to differentiate offerings thus charging a higher price Cost Based Pricing Correct Answer: Setting prices for product/service based on cost of producing, distributing, and selling product plus fair rate of return for companies efforts and risk Types of cost Correct Answer: Fixed costs, variable costs, total costs Fixed costs Correct Answer: Cost doesn't vary with production or sales level Variable costs Correct Answer: Cost vary based on level of production Total cost Correct Answer: Sum of fixed and variable cost Types of cost-based pricing Correct Answer: Cost-Plus Pricing and break-even pricing Cost-Plus pricing Correct Answer: (AKA markup pricing) adding standard markup to cost of product Break-even pricing Correct Answer: Set price to break even on cost of making and marketing product, or setting price to make a target return