Please identify what types of companies would use market-based pricing versus what type of companies would...

Please identify what types of companies would use market-based pricing versus what type of companies would use cost-based pricing and why.

Expert Solution

Market Based Pricing

It is also called Competition based Pricing . According to the Market based pricing, products are compared which are offered in the market and price is determined according to their Competitors product. Seller of the Products sets the Price according to their Competitors product depending on how well their own Product matches up. Therefore Companies that face high level of competition used market based Pricing. It is difficult for the customers to see much difference between your product and that of your's competitors.

Cost based pricing

Cost based pricing is the pricing method of determining the selling price of the product by the company. In this pricing method, firm calculates the cost of the product and then add the profit percentage to calculate the selling price .

It is not difficult for the customer to identify difference between your product and your's competitors product.

Therefore, companies that face high competition use market-based pricing and companies that do not face much competition uses cost-based pricing.

ekkarill92 answered 2 years ago

Please identify what types of companies would use market based pricing versus what type of companies...

Please identify what types of companies would use market based pricing versus what type of companies would use cost based pricing and why.

200 WORDS REQUIREMENT!!! What type of organization would benefit the most from market pricing? from team-based...

200 WORDS REQUIREMENT!!! What type of organization would benefit the most from market pricing? from team-based pay?

What is market-based pricing and what are some examples that shows how prices would be determined...

What is market-based pricing and what are some examples that shows how prices would be determined using this method

What are the benefits of market based transfer pricing?

Numerous companies are using the value-based pricing approach in establishing their pricing strategies. How would you...

Numerous companies are using the value-based pricing approach in establishing their pricing strategies. How would you define the value-based pricing approach? What are the main differences between the cost-based pricing and the value-based pricing approach?

In a competitive market, a supplier will use which type of pricing approach? Cost plus. Target...

In a competitive market, a supplier will use which type of pricing approach? Cost plus. Target pricing. Target costing. Market price.

Identify five types of jobs you would consider taking. Identify the objectives you would use in...

Identify five types of jobs you would consider taking. Identify the objectives you would use in making this decision. Create a utility scale using the direct approach.

Which types of companies would most likely use a process costing system and which types of...

Which types of companies would most likely use a process costing system and which types of companies would use job costing? Provide examples of two Saudi Companies. Explain the methods with which the cost per unit will be calculated for each type of company using numerical example

is it possible to identify different types of quasars based on its color? please provide a...

is it possible to identify different types of quasars based on its color? please provide a refrence so i can read into it more

Identify two companies that you would consider working for. Do this based on your interests and...

Identify two companies that you would consider working for. Do this based on your interests and goals. You may choose a company you currently work for or one you have previously worked for (if you would work for them again). Do a comprehensive review of each company. ▪ Discuss each company’s mission, vision and what they stand for and how that resonates with you. ▪ Dive deeper into the management style and structure of the company. ▪ Identify their organizational...

Question