Describe the three bases on which firms usually set their pricing
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DEMAND--- The main factor on the basis of which the prices are decided is demand. There is negative relationship between price and demand bcx whenever increase in demand, price falls.... or when price increases demand decreases.. In this, way price decidation affected with demand...
Cost of production - - It is also the main factor that affect in deciding price of the product. If the production cost is high then it automatically increases the price of the product. Similarly when cost of production decreases it automatically decreases the prices of products.
Risk - - - Risk also affect the price decidation. Bcx a business should have to decide the price according to the risk in the business...
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Cost of production - - It is also the main factor that affect in deciding price of the product. If the production cost is high then it automatically increases the price of the product. Similarly when cost of production decreases it automatically decreases the prices of products.
Risk - - - Risk also affect the price decidation. Bcx a business should have to decide the price according to the risk in the business...
HOPE ITS HELPFUL FOR YOU
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Answer:
- Between price floor and ceiling 3 major pricing strategies can be identified: Customer value-based pricing, cost-based pricing and competition-based pricing.
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