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CebNafjref411

Business Finance

Description

An increasing number of companies are basing their prices on the product's perceived value. Value-based pricing uses buyers' perceptions of value, not the seller's cost, as the key to pricing. Value-based pricing means that the marketer cannot design a product and marketing program and then set the price. Price is considered along with the other marketing mix variables before the marketing program is set.

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More and more, marketers have adopted value pricing strategies, offering just the right combination of quality and good service at a fair price. In many cases, this has involved the introduction of less expensive versions of established, brand name products. Campbell introduced its Great Starts Budget frozen-food line, Holiday Inn opened several Holiday Express budget hotels, Revlon's Charles of the Ritz offered the Express Bar collection of affordable cosmetics, and fast-food restaurants such as Taco Bell and McDonald's offered "value menus." In other cases, value pricing has involved redesigning existing brands in order to offer more quality for a given price or the same quality for less.

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Question: Consider products that you have purchased. How would you use "Value-Based Pricing" to create competitive advantage?

How to sell Value vs. Price"

https://www.youtube.com/watch?v=eu8dN4n_eV8

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How to Sell Value ot Your Pricing

https://www.youtube.com/watch?v=VCQjTHWl3aE

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Running Head: DISCUSSIONS

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Discussions
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DISCUSSIONS

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DQ1
Value verses Price and How to Sell Value at your Price
The value of a product purchased by a customer is the distinction between the prices of
the product and how the customer perceives on its usefulness or benefits. Considering value
more than price is an important factor while pricing products. While customers purchase
products for instance, Mc Donald’s products, ...


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