A number of terms are listed below:
Target pricing .......................... Target cost per unit
Value engineering ..................... Value analysis
Price discrimination ................... Peak-load pricing
Life-cycle pricing ..................... Customer life-cycle pricing
Invested capital ....................... Target return on investment
REQUIRED
Select the terms from the above list to complete the following sentences.
__________is a policy well suited to a highly competitive environment where many substitutes are available and may provide customers with the same valuable attributes at lower cost.
__________ is set after the price and target margin are determined. This target margin may be in percent or dollars at either the gross or operating margin level.
In a highly competitive environment, __________ refers to the total cost of ownership of a product including purchase, operating costs, maintenance, and disposal. In comparison, __________ refers to the total cost to the seller of the product from cradle to grave. The __________ refers in this chapter to total assets. The __________ is the target operating income divided by the invested capital. __________ is illegal because the manufacturer's intent is to obstruct or destroy competition. In contrast, __________is the practice of charging the highest rate to provide a service when demand for the service is highest. It is common practice and not illegal. __________ is the evaluation by a top management team of any innovations and modifications to any business function that customers would value most highly. In comparison, __________ is a process to retain both quality and all attributes that customers value while reducing costs.