We learned from the chapter about Effective customer-oriented pricing involves and it involves 

• understanding how much value consumersp
• Place on the benefits they receive from the product 
• Product and setting a price that captures that value
• Value-based pricing uses the buyers
• Perceptions of value, not the seller’s cost, as

The key to pricing. Price is considered before the marketing program is set.two types of pricing are:

Value based and cost based 

● Value-based pricing is customer driven

● Cost-based pricing is product driven.

Types of costs

● Fixed costs

● Variable costs

● Total costs Cost-based pricing involves setting prices

based on the costs for producing, distributing,and selling the product plus a fair rate of return for its effort and risk