Question

state and explain the different methods of pricing

Answer 1

Answer:

heyyy!!

There are different pricing strategies to choose from but some of the more common ones include:

*Value-based pricing.

*Competitive pricing.

*Price skimming.

*Cost-plus pricing.

*Penetration pricing.

*Economy pricing.

*Dynamic pricing.

• Value-based price is a pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical prices.
• Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition.
• Price skimming is a price setting strategy that a firm can employ when launching a product or service for the first time.
• Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage to the product's unit cost.
• Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering.
• Economy pricing is a method of pricing in which a low price is assigned to a product with decreased production costs.
• Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing is a pricing strategy in which businesses set flexible prices for products or services based on current market demands.

Explanation:

Hope so it helps!!