MarketingLesson 1 of 1 in the course Pricing Products and Services

Pricing, Customer Value, and Responsible Pricing Decisions

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Price is part of nearly every exchange: a buyer gives something of value in return for a product or service. This lesson introduces pricing and explains why customers judge a price in relation to the value they expect to receive.

A buyer and seller exchange things they value. The buyer receives a product or service, while the seller receives payment or another agreed form of value. Price is the value a buyer gives up in an exchange, usually money. The term used can vary: students pay tuition, clients pay fees, and drivers pay tolls. These terms describe prices for different kinds of exchanges.

All flashcards

Price
The value a buyer gives in an exchange for a product or service, usually money.
Marketing mix
The coordinated elements of product, price, promotion, and place.
Perceived costs
Money and other sacrifices, such as time, effort, or travel, associated with a purchase.
Price anchoring
The influence of an initial reference point on how a later price is judged.
Pricing analyst
A professional who studies markets and data to support price recommendations.

Quiz questions

  1. Which element of the marketing mix directly generates revenue for an organization?Answer: Price
  2. How is profit calculated?Answer: Total revenue minus total costs.
  3. Which expense is typically fixed within a relevant operating range?Answer: A building lease payment.
  4. What happens in price anchoring?Answer: An initial reference point influences later price judgments.
  5. What is a pricing analyst’s main role?Answer: Analyzing market information and data to support price recommendations.

Based on Principles of Marketing by Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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