--%>
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 : Are the limbs converted into wings of

    Are the limbs converted into wings of bats and the wings of bird’s illustrations of evolutionary homology or analogy? What regarding whale fins compared to the fish fins?

    		•
  • Q : Difference between Telemarketing and

    Difference between Telemarketing & Telesales: Telesales is the utilization of the telephone for selling & promoting products or services to a business or consumer base.

  • Q : Classification of immuno fluorescence

    Into how many kinds is immuno fluorescence is classified?

    		•
  • Q : Path tracked by energy absorbed by

    What is the path tracked by the energy absorbed by plants to be utilized in photosynthesis?

    		•
  • Q : What biomass pyramids represent What

    What biomass pyramids represent?

    		•
  • Q : Types of muscles Name the two types of

    Name the two types of muscles?

    		•
  • Q : Diseases caused by secretion of

    State some of the diseases which is caused by the secretion of abnormal GH by hypophysis?

    		•
  • Q : Managing in Global Economy -

    This poses many challenges and opportunities. For example, at a macro level, property ownership arrangements vary widely in different countries. So does the availability of natural resources and components of the infrastructure, as well as the role of government in business. For our purposes, a v

    		•
  • Q : Group Behavior - Organizational Behavior

    Concept of group A group consists of two or more persons who interact with each other, consciously for the achievement of certain common objectives. The members of the group are inter-dependent and are aware that they are part of a group. In the words of D

    		•
  • Q : Explain International Licensee

    International Licensee: It is the contractual agreement among two business entities in which the licensor allows the licensee to utilize a brand name, patent, or other proprietary right, in exchange for a royalty or fee. Licensing facilitates the lice

    		•