ENTREPRENEURSHIP

Detailed explanation-1: -Competition-Based Pricing Strategy Competition-based pricing is also known as competitive pricing or competitor-based pricing. This pricing strategy focuses on the existing market rate (or going rate) for a company’s product or service; it doesn’t take into account the cost of their product or consumer demand.

Detailed explanation-2: -Lowering prices is one of the most common strategies that companies use to increase market share for a product. If their competitors also lower their prices, a price war begins. Price wars are most common in industries where there is both heavy competition and several comparable products.

Detailed explanation-3: -Some of the more common pricing objectives are: maximize long-run profit. maximize short-run profit. increase sales volume (quantity)

Detailed explanation-4: -A pricing objective underpins the pricing process for a product and it should reflect your company’s marketing, financial, strategic and product goals, as well as consumer price expectations and the levels of your available stock and production resources.