Price is the value of money (or its equivalent) placed on a good or service. It is usually expressed in monetary terms, such as $40 for a sweater. It may also be expressed in non-monetary terms, such as free goods or services in exchange for the purchase of a product. The oldest form of pricing is the barter system. Bartering involves the exchange of a product or service for another product or service, without the use of money. For example, a business might exchange some of its products for advertising space in a magazine or newspaper. Some companies also will exchange advertising spots on their web pages as a form of bartering, or an equal trade.

Key Terms:
Price
Return on investment (ROI)
Market share
Break-even point
Demand elasticity
Law of diminishing marginal utility
Price fixing
Price discrimination
Unit pricing
Product mix pricing
Price lining
Bundle pricing
Geographical pricing
Segmented pricing strategy
Psychological pricing
Prestige pricing
Everyday low prices (EDLP)

*Recognize the different forms of pricing
*Discuss the importance of pricing
*Differentiate between market share and market position