Some important pricing definitions Utility: The attribute that makes Value EXample: Caterpillar it capable of want satisfaction Tractor is $100, 000 VS Market Value: The worth in terms of 90,000 other products $90,000 if equal Price: The monetary medium of 7.000 extra durable exchange 6,000 reliability 5.000 service 2,000 warranty S110,000 in benefits $10,000 discount! @2000 Prentice Hall©2000 Prentice Hall Some important pricing definitions Utility: The attribute that makes it capable of want satisfaction Value: The worth in terms of other products Price: The monetary medium of exchange. Value Example: Caterpillar Tractor is $100,000 vs. Market $90,000 $90,000 if equal 7,000 extra durable 6,000 reliability 5,000 service 2,000 warranty $110,000 in benefits - $10,000 discount!