2007-03-18 16:39:06 · 2 answers · asked by Ellie W 3 in Business & Finance ➔ Small Business
As compared to nonpricing stategies such as advertising.
2007-03-18 17:21:48 · update #1
PRICING STRATEGIES -
There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses like to use.
Competition based pricing
Setting the price based upon prices of the similar competitor products.
Competitive Pricing is based on three types of competitive product:
-Products have lasting distinctiveness from competitor's product. here we can assume
-The product has low price elasticity.
-The product has low cross elasticity.
-The demand of the product will rise.
-Products have perishable distinctiveness from competitor's product, assuming the product features are medium distinctiveness.
-Products have little distinctiveness from competitor's product. assuming that:
-The product has high price elasticity.
-The product has some cross elasticity.
-No expectation that demand of the product will rise.
-The pricing is done based on these three factors.
2007-03-19 04:05:53 · answer #1 · answered by Anonymous · 3⤊ 0⤋
The Strategies of pricing
2007-03-18 23:46:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋