Price Planning

A price representsthe value of goods or service for both the seller and the buyer.Price planningis the systematic decision made 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 marketing factor is the cost savings______(46).An

example of anintangible marketing factor is a consumer's pride in the ownership of aLamborghini rather than another brand of automobile.To make a deal,both thebuyer and

seller must feelthat the price of goods or service provides an equitable value.To the buyer,thepayment of a price reduces purchasing power______(47).To the seller, receipt

of a price is asource 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)monetary and non-monetary charges,discounts,handling and shipping fees,creditcharges and other forms of interest,and late-payment penalties.Anon-

price exchange wouldbe selling a new iron for 10 books of trading stamps or an airline offeringtickets as payment for advertising space and time.Monetary and non-

monetary exchangemay be combined.This is common with automobiles,______(49).This combinationallows a reduction in the monetary price.

From a broaderperspective,price is the mechanism for allocating goods and services amongpotential purchasers and for ensuring competition among sellers in an open

market economy.Ifthere is an excess of demand over supply,prices are usually bid up byconsumers.If there is an excess of supply over demand,______(50).______(49)

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