Question

Explain the four broad methods of price fixation of a product.

Answer 1

A part from the four basic pricing strategies -- premium, skimming, economy or value and penetration -- there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item.

Answer 2

Explanation:

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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.