Principles of Marketing
Pricing:
Understanding, Capturing Customer Value and Break-Even Analysis
What Is a Price?
Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service.
Price is the only element in the marketing mix that produces revenue; all other elements represent costs
Factors to Consider When Setting Prices
Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value
Customer Perceptions of Value