Price-The amount of money expected, required, or given in payment for something.

The Barter System-People exchanged services and goods for other services and goods in return.

Product Value-Assessed by a business when setting a price for a particular product

Importance of price- Important to marketers because it represents marketers assessment of the value customers see in the product or service and are willing to pay for a product or service.

(ROI)-Usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.

(ROI) Examples- Net Profit/ Total Investment * 100 = ROI . You can apply this formula with any example.

Break Even Point- The point at which the cost or expenses and revenue are equal. There is no net loss or gain, and one has "broken even."

Law of Diminishing marginal utility- Law of economics stating that as a person increases consumption of a product while kepping consumption of other product constant.

Price Discrimination- Pricing strategy that charges customers different prices for the same product or service.

Clayton Anti- Trust Act 1914 - Meant to further promote competition in U.S. buisinesses and discourage the formation of monopolies.

Robin- Patman Act of 1936- Outlaw price discrimination.

1975 Consumer Goods Pricing Act- Act to provide lower prices for consumers.

Competition- Oriented Pricing- Is setting the price of a product or service based on what the competition is charging.

Skimming Pricing- Pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time.