Low or High pricing strategy
What is Low or High pricing strategy and what are their advantages and disadvantages?
Expert
Everyday low/high pricing strategy is also called as value based pricing. It is the pricing strategy in which a product's price is actively dependent upon its demand. Therefore the prices keep changing actively everyday with reference to the demand of the product. If the demand is high the price is high and vice versa.
ADVANTAGES OF EVERYDAY LOW/HIGH PRICES:
• It takes into account industry structure, segmentation, competitor pricing practices, and substitutes and alternatives, all of which can make pricing more coherent and complex.
• Value-based pricing can be the only way to price new products or "breakthrough" products.
• Pricing can be based on several customer-focused methods: expert opinion, customer surveys, price experiments (for example by using conjoint-analysis theories and techniques), and analysis of past, present and expected market data and conditions.
DISADVANTAGES OF EVERYDAY LOW/HIGH PRICES:
• It requires more data gathering and analysis than market-based or cost-plus approaches.
• The process for determining price is more complex than other approaches because it uses "soft" market data in addition to "hard" market data.
• Most methods used to gather data for this type of pricing are relatively specialized and require expertise to convert raw data to information to knowledge (i.e. needing adequate level of resources and systematic business intelligence and customer insight process in place). Thus, for small and mid-size companies find difficult to do by themselves (outsourcing always a possibility).
Define the term hematopoiesis? Answer: The Hematopoiesis is the formation of blood cells and other constituent elements of blood.
Why the Krebs cycle is also termed as the final common pathway of degradation of the organic compounds?
What are the major structures in the cell nucleus?
Prepare a 4-5 page report, addressing the following: A) Determine and discuss a pricing strategy (penetration or skimming).B) Determine and discuss pricing tactics( product line pricing, value pricing, differential pricing, o
Specify the specialized conductive tissues of plants?
Give a brief description of adaptive convergence?
Specify types of leukocytes and also how are they classified into agranulocytes and granulocytes?
Describe briefly the term plant hormones?
Name the chemical substances which compose the plasma membrane?
ABC analysis: It is an inventory management technique wherein the items are classified and clubbed according to their value. The items including the top 5-10% of the total value of inventory are known as "Class A", next 10-15% is classified as "Class
18,76,764
1934380 Asked
3,689
Active Tutors
1441263
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!