Question

Describe Market-Oriented Pricing Methods in details.

Answer 1

Solution -

According to this method, price is calculated based on market conditions. This group has the following steps:

Prerecived Pricing using Value-

In the process of this price, manufacturers, advertising tools, additional benefits, production quality, channels of distribution etc. Based on customer's retention of products and services that consider all factors such as the manufacturer price, it determines the manufacturer price. Customers' perspective

Value Pricing Method -

According to this pricing mechanism, companies compose low-cost products and maintain high-quality offers. Prices are not kept low, but re-engineering is used to reduce the price of the product and to maintain the quality at the same time.

Going Rate Pricing Method -

In the process of this price, companies consider the competitor to set a price for its own offer as a basis for determining the value. Generally, the competitors' prices are very low and price war ends in companies.

Oction type Pricing Method -

These types of pricing methods are popular with internet usage. EBay, Quicker, OLX etc. Many online sites offer customers a platform where they buy or sell goods.

Differential Pricing Method

This pricing method is adopted when different prices have to be charged from the different group of customers. The prices can also vary with respect to time, area, and product form.