Effective ________ Pricing Involves Understanding How Much Value Consumers Place

question 69

Multiple Choice

Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.

• A) competition-oriented
• B) cost-based
• C) time-based
• D) customer-oriented
• E) marketer-oriented

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Definitions:

Patent

A government-granted right giving an inventor exclusive rights to make, use, or sell an invention for a certain number of years.

Amortized

The gradual reduction of a debt over a specified period of time by making regular payments of principal and interest.

Fair Value

A measure of the worth of an asset or liability, based on its current market price or the price it would fetch in an orderly transaction at the measurement date.

Controlling Interest

The ownership of a majority of a firm's stock, giving the shareholder the ability to control decisions and operations.