The document discusses factors to consider when setting prices, including customer perceptions of value, company and product costs, and other internal and external considerations. It explains that price is determined by balancing customer willingness to pay based on perceived value against company costs. Key factors discussed include value-based versus cost-based pricing, fixed versus variable costs, demand curves, price elasticity, and competitor strategies.

1. Chapter Ten Pricing Understanding and Capturing Customer Value

28. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall