Kinds of pricing approaches for a firm
What are the various kinds of pricing approaches for a firm?
Expert
The various kinds of pricing approaches for a firm are as follows:
a) Predatory pricing: This is followed to remove any other competitors in market.
b) Premium pricing: Where the price is kept elevated as in case of designer items thus as it raise the reputation of the product and maintain its goodwill.
c) Cost plus pricing: In this, the firm simply adds up its estimated gain to the cost to fix the selling price.
d) Skimming: The Skimming is a pricing approach adopted by firms beneath which the goods are sold at elevated prices to capture the market value.
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