ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Competitors What are they charging for different products and services? What inclusions and level of service are they offering for those prices? What customers are they attracting with their pricing? And how are they positioned in the marketplace?
Detailed explanation-2: -• Demand Pricing Demand pricing is also called demand-based pricing, or customer-based pricing. This pricing method uses consumer demand of a product or service as the main element of setting a price for a product or service. Also known as dynamic pricing.
Detailed explanation-3: -Thus, in setting prices, companies need to consider all three factors: customer perceived value, costs, and competitors pricing strategies. Costs are an important consideration in setting prices. However, cost-based pricing is often product driven.
Detailed explanation-4: -Competitive Based Pricing (or Competition Based Pricing) is a pricing model where your price points are heavily influenced by those of your competitors. This approach focuses outwardly on the market, rather than inwardly on your costs (Cost Plus Pricing).