GENERAL KNOWLEDGE

Detailed explanation-1: -Companies pursue survival as their major objective if they are plagued with overcapacity, intense competition, or changing consumer wants. As long as prices cover variable costs and some fixed costs, the company stays in business.

Detailed explanation-2: -11. 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.

Detailed explanation-3: -Penetration pricing: With this pricing strategy, a business sets a low price on a new product or service in an attempt to gain significant market share quickly. The business plans to increase prices in the future, often setting a time limit on the introductory rate.

Detailed explanation-4: -Your company may use a survival-based pricing objective when it’s willing to accept short-term losses for the sake of long-term viability. Under this objective, pricing can be flexible – prices are lowered in order to increase sales enough to keep the business going, i.e. cover essential costs.