--%>
Assignment Help - homework help

Low or High pricing strategy

What is Low or High pricing strategy and what are their advantages and disadvantages?

E

Expert

Verified

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).

   Related Questions in Biology

  • Q : What is Perception What do you

    What do you understand by the term Perception? Briefly describe it.

    		•
  • Q : Strategic Management Project Assignment

    follow the guidelines mentioned in Individual Project Guidelines_VS.docx and the Project should be in Strategic Management. Use the document (b) as an example and develop the project. The quality should be excellent as per the American Universities and the person should be qualified MBA(Strategic M

    		•
  • Q : Filtering blood from kidneys State the

    State the vessels which drain the filtered blood from kidneys?

    		•
  • Q : Impact of Globalization in

    Growing internationalization of business has its impact on people management. The amazement is required to cope with problems of unfamiliar laws, languages, practices, competitors, attitudes, management styles, work ethics, and more, personnel functions such as hiring, training, compensating, mai

    		•
  • Q : Cost of Quality Define the term “ Cost

    Define the term “Cost of Quality” and is ramifications or implications in the organization.

    		•
  • Q : Define Emerging Business Venture

    Emerging Business Venture: It is a business venture is a start-up enterprise which is formed with the expectation and plan that a financial profit will outcome. Most refer to a business venture as a small business, as it normally starts out with an id

    		•
  • Q : Define membrane Membrane : Membrane is

    Membrane: Membrane is any delicate sheet which separates one region from the other blocking or allowing (selectively or wholly) the passage of substances. The skin, for illustration, can be considered a membrane which separates the exterior from the i

    		•
  • Q : Examples of homology or evolutionary

    Are the limbs modified in the wings of bats and wings of bird’s examples of homology or evolutionary analogy? What about whale fins compared to the fish fins?

    		•
  • Q : Define the term anticoagulants Define

    Define the term anticoagulants? Explain the practical applications of anticoagulants, such as heparin, in Medicine?

    		•
  • Q : Main differences of vertebrate nervous

    Write down some main differences of vertebrate nervous systems comparing to invertebrates?

    		•