BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An auction uses a static pricing strategy. If Profit = Revenue-Expense and Revenue = Price × Quantity sold, then to maximize profits we need to find a price where any further increase in price would lead to a large falloff in demand. Pricing for market penetration and skimming are contrasting strategies.

Detailed explanation-2: -A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.

Detailed explanation-3: -There are a variety of pricing strategies available. Price skimming, Pricing for market penetration, premium pricing, economy pricing, bundle pricing, value-based Pricing, and dynamic Pricing are a few of them. Price determination involves assessing the business and competitors’ goals and consumer preferences.

Detailed explanation-4: -Different types of Pricing Policies followed by Companies are: 1. Geographical Pricing 2. Price Discounts and Allowances 3. Competitive Bidding in Competitive Markets as a Strategy.