Question

Explain different pricing method with suitable example in marketing

Answer 1

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The pricing methods can be broadly classified into two parts:

1)Cost Oriented Pricing Method Market:-
Definition: Cost based Pricing.Cost based pricing is one of thepricing methods of determining the selling price of a product by the company, wherein the price of a product is determined by adding a profit element (percentage) in addition to the cost of making the product.

2)Oriented Pricing Method:-
A method of setting prices that takes into account the company's profit objectives and that covers its costs of production. For example, a common form of cost-oriented pricing used by retailers involves simply adding a constant percentage markup to the amount that the retailer paid for each product.