Price of a product is the most considered factor when purchasing a product. The marketers should price the products in a manner that the consumers feel that its worth the value. For this variou pricing techniques may be used:
Cost-based Pricing:
Refers to pricing method in which some desired profit margins is added to the cost of the product to obtain the final price.
Demand-based Pricing:
Refers to a pricing method in which price of a product is finalised on the basis of the demand of the product.
Competition-based Pricing:
The firm sets out the price of the product on the basis of the price of products offered by the competitors.
Other methods include:
Value-based Pricing:
Companies try to win customer loyalty by charging low price for high quality products.
Target return Pricing:
Aims to get back the investment done for a product.
Going Rate Pricing:
The price is set on the basis of current market trends
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