Електронний багатомовний

термінологічний словник

Electronic Multilingual Terminological Dictionary


Economics

Price

Price is the amount of money charged for a product or a service.
More broadly, price is the sum of all the values that customers give up to gain the benefits
of having or using a product or service

The mechanism that allocates scarce resources in a market economy. In market equilibrium, the market price balances quantities sellers are willing to supply and quantities buyers are willing to demand. The price charged for something depends on tastes, income, and relative prices of substitutes and complements of those customers who are willing to buy at all available prices. A profit-maximizing firm will charge a price corresponding to the quantity of output at which its marginal cost equals its marginal revenue [Raupp, & Raupp, 251].
Price is the amount of money charged for a product or a service.
More broadly, price is the sum of all the values that customers give up to gain the benefits
of having or using a product or service
Price is important to marketers, because it represents marketers’ assessment of the valuecustomers see in the product or service and are willing to pay for a product or service. Price is a very important decision criteria that customers use to compare alternatives. It alsocontributes to the company’s position. In general, a business can price itself to match itscompetition, price higher, or price lower.
Pricing to Meet Competition. Many organizations attempt to establish prices that,on average, are the same as those set by their more important competitors.
Quality in production,better service, creativity in advertising, or some other element of the marketing mix are usedto attract customers who are interested in products in a particular price category.
PricingAbove Competitors. Pricing above competitors can be rewarding to organizations,provided that the objectives of the policy are clearly understood and that the marketingmix is used to develop a strategy to enable management to implement the policysuccessfully.
Pricing above competition generally requires a clear advantage on some nonprice elementof the marketing mix.
Pricing Below Competitors. While some firms are positioned to price above competition,others wish to carve out a market niche by pricing below competitors. The goalof such a policy is to realize a large sales volume through a lower price and profit margins.By controlling costs and reducing services, these firms are able to earn an acceptable profit,even though profit per unit is usually less .

Sources:

Raupp E. D., & Raupp D. V. (2018). Dictionary of Economic Terms. Portsmouth, New Hampshire: Blue Impala Press.

⠀ Armstrong, G., Kotler, P. (2013).Marketing: an introduction(11th ed.). Prentice Hall (p.257)

⠀ Burnett, J. (2008). Core Concepts of Marketing. Retrieved from http://www.freeinfosociety.com/media/pdf/2936.pdf.

⠀ Зимин, В. А. (2011). Ценообразование : учебное пособие. Самара : ООО «Издательство Ас Гард» (с. 7)

Part of speech Noun
Countable/uncountable Countable
Type Abstract
Gender Neutral
Case Nominative