As an Amazon Associate I earn from qualifying purchases.

Cost Based Pricing Definition and Explanation PDF Download

Learn Cost Based Pricing definition in marketing with explanation to study “What is Cost-Based Pricing”. Study cost based pricing explanation with marketing terms to review marketing course for online MBA programs.

Cost Based Pricing Definition:

  • Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Cost Based Pricing Explanation:

Cost based pricing is a strategy which determine product selling price, set by the company. The price is usually fixed by adding profit element with the price. According to the market researchers, survey has been conducted by the companies in order to determine product price, keeping in view the current market price, the final product cost has determined.

Keep Learning Marketing Explanations

What is Generation X?

Generation X were kids during a period of moving societal qualities and as kids were once in a while called ...

What is Market Myopia?

Promoting scholars believe trade to be the focal idea without which there would be no such thing as advertising. For ...

What is Irregular Demand?

Unpredictable interest can be request which isn't reliable and the best case of unpredictable interest is regular items like umbrellas, ...

What is Satisfaction?

Fulfillment is a principal idea in present day promoting. In numerous associations, consumer loyalty is viewed as the most significant ...

What is Branding Strategy?

Brand strategy is defined as a long term process for the growth of a brand aligns with the mission of ...

What is Life Stage?

A phase or stage throughout everyday life -, for example, being single, free and working, being a parent of small ...