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pricing decisionprice may be defined as the exchange of goods or services in terms of money without price firm can survive in the society if money is
pricing is a problem in four general types of situations1 when the firm develops or introduces a new product and it is fix the price of the product
introduction to pricing decision a pricing decision is one of the most crucial and difficult decision that a firm has to make it is one of the most
price sensitivitynagle has identified nine factors that contribute to price sensitivity and has also presents various methods or techniques to
determine the internal factors of pricing decision1 organization factor pricing decision occur on two level in the organization overall price
explain the external factors of pricing decisions 1 demand the market demand for a product or service obviously has big impact on pricing since
determine the price determination process1 estimating the demand for the product the first step in determining the price of a new product is to
cost oriental pricing policycost of production of a product is the most important variable and most important determinant of its pricethere may type
full cost or mark up pricing or cost plus pricing method in this method the marketer estimates the total cost of producing or manufacturing the
marginal cost or incremental cost pricing methodhere the company may work on the premise of recovering its marginal cost and getting a contribution
break even point or bep pricing methodbreak even point is the volume of sales at which the total sale revenue of the product is equal to its total
rate of return or target pricing method under this method of price determination first of all a rate of return desired by the enterprises on the
going rate or follow the crowd pricing-in this method the firm price its products at the similar level as that of the competition this method
what is sealed bid pricinganother from of competition oriented pricing is the sealed bid pricing in a large number of projects industrial marketing
customer oriented or perceived value pricingthere is an increasing trend to price the product on the basis of the customers perception of its value
what the traffic can bear pricingpricing based on what the traffic can bear is not a sophisticated method it is used by retail traders as well as by
explain skimming pricingit is one of the most commonly discussed pricing method is the skimming pricing this pricing method to the firms desires to
state the penetration pricingas opposed to the skimming pricing the objective of penetration pricing is to gain a foothold in a highly competitive
competition oriented pricing policymost companies fix the price of their products after a careful consideration of the competitors price structure
state the price determination under the market conditionthe price determination under the following market condition is as follows1 pure competition
intra company transfer pricinga company engaged in production may have several segments division or departments doing production jobs or
what are the objectives of intra company transfer pricingthe objectives of intra company transfer pricing are1 evolution of performance and
explain the methods of pricing the following methods are used for intra company transfer pricing1 total cost method transfer is made at absorption
explain the ratio analysis according to koshera ratio is the relation of the amount a to another b expressed as the ratio of a to b a b a is to b or
ratio analysisa ratio is a simple arithmetical expression of the relationship of one number to anotherit may be explained as the indicated quotient