Kinds of pricing approaches for a firm

Question

What are the various kinds of pricing approaches for a firm?

Answer 1

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.