Price Planning

A price representsthe value of goods or service for both the seller and the buyer. Price planningis the

systematic decisionmade by an organization after regarding all aspects of pricing.

The value of goodsor service can involve both tangible and intangible marketing factors.Anexample of

a tangible marketingfactor is the cost savings_(46).An example of an intangible marketin

factor is aconsumer's pride in the ownership of a Lamborghini rather than another brand ofautomobile.To

make a deal,both thebuyer and seller must feel that the price of goods or service provides anequitable

value.To thebuyer,the payment of a price reduces purchasing power_________(47).To theseller,

receipt of a priceis a source of revenue and an important determinant of sales and profit levels.

Many words aresubstitutes for the term price.admission fee,membershipfee,rate,tuition,service charge,

donation,rent,salary,interest,retainer,andassessment.No matter what it is called,________(48).mone-

tary andnon-monetary charges,discounts,handling and shipping fees,credit charges andother forms of inter-

est,and late-paymentpenalties. A non-price exchange would be selling a new iron for 10 books oftrading

stamps or an airlineoffering tickets as payment for advertising space and time.Monetary andnon-monetary ex-

change may becombined.This is common with automobiles,________(49).This combination allows are-

duction in themonetary price.

From a broaderperspective,price is the mechanism for allocating goods and services amongpotential

purchasers and forensuring competition among sellers in an open market economy.If there is anexcess of de-

mand oversupply,prices are usually bid up by consumers.If there is an excess of supplyover demand,

_________ (50)._________(46)

A.a price containsall the connotation of other terms of purchase

B.obtained by thepurchase of a new bottling machine by a soda manufacturer

C.where the consumergives the seller money plus a trade-in

D.available forother items

E.prices are usuallyreduced by sellers