"Value-based pricing reverses this process. The company first assesses customer needs and value perceptions. It then sets its target price based on customer perceptions of value. The targeted value and price drive decisions about what costs can be incurred and the resulting product design. As a result, pricing begins with analyzing consumer needs and value perceptions, and price is set to match consumers’ perceived value." (Marketing: An Introduction for Education Management Corporation, Pg 276)
Price is the amount of money customers must pay to obtain the product.(Marketing: An Introduction for Education Management Corporation, Pg 54)
The price for this product at a grocery store would probably be around $2.48. I chose this price because it is about the typical price of a bag of chips that a person will buy at the grocery store. Personally I usually would not pay more than $4 to $5 on a bag of chips. So I decided to put it at $2.48 instead of $3.48 because the chips that are usually marked at that price are big brands like Doritos and Lays. I feel that if I mark this product at a price a little lower than those brands, then it could draw people into saying "Hey those sound good and its a flavor combination that I haven't heard of before."
The price for this product at a bar or nightclub will be around $4 to $6. I chose this price because people that are typically at the bar are those that are okay with spending a bit more money, plus things at bars are usually more expensive than in stores.
The people that shop at grocery stores are those that are looking for great deals and don't want to spend money on something they don't feel is worth it. People that buy at bars are people that are just looking for a great time and will buy just about anything at what ever cost to have that time.
Price is the amount of money customers must pay to obtain the product.(Marketing: An Introduction for Education Management Corporation, Pg 54)
The price for this product at a grocery store would probably be around $2.48. I chose this price because it is about the typical price of a bag of chips that a person will buy at the grocery store. Personally I usually would not pay more than $4 to $5 on a bag of chips. So I decided to put it at $2.48 instead of $3.48 because the chips that are usually marked at that price are big brands like Doritos and Lays. I feel that if I mark this product at a price a little lower than those brands, then it could draw people into saying "Hey those sound good and its a flavor combination that I haven't heard of before."
The price for this product at a bar or nightclub will be around $4 to $6. I chose this price because people that are typically at the bar are those that are okay with spending a bit more money, plus things at bars are usually more expensive than in stores.
The people that shop at grocery stores are those that are looking for great deals and don't want to spend money on something they don't feel is worth it. People that buy at bars are people that are just looking for a great time and will buy just about anything at what ever cost to have that time.
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