As an Amazon Associate I earn from qualifying purchases.

What is Cost Based Pricing in Marketing? 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 Descriptive Research?

It is a research method which explains the characteristics of the targeted population. It usually describes the situation, rather than ...

What is Brand Dilution?

It happens when brand losses its position from overuse. This situation appears when a product gets unsuccessful in fulfilling the ...

What are Tying Agreements?

The term binds course of action alludes to the act of offering an item to a purchaser with their consent ...

What are Marketing Intermediaries?

The bodies associated with executing the item from the maker till the time it gets acquired by a definitive purchaser ...

What is Quality?

In assembling, a proportion of greatness or a condition of being free from deformities, lacks and noteworthy varieties. It is ...

What is Elimination-by-Aspects Heuristic?

According to elimination by aspect method, it is a decision making technique in which customers have multiple options in order ...