ENTREPRENEURSHIP

Detailed explanation-1: -What might happen if a business’s customers feel that they are not getting the most value for their money? Customers spend money elsewhere. If customers feel that a business’s goods are overpriced, they will find somewhere else to buy.

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: -If a consumer believes they are getting a good deal, then lower prices can help get you the sale. On the other hand, low prices can also give the impression that the product is of low quality.

Detailed explanation-4: -The importance of pricing Pricing is important since it defines the value that your product are worth for you to make and for your customers to use. It is the tangible price point to let customers know whether it is worth their time and investment.

Detailed explanation-5: -Value-Based Pricing Strategy A value-based pricing strategy is when companies price their products or services based on what the customer is willing to pay. Even if it can charge more for a product, the company decides to set its prices based on customer interest and data.