Question

Please explain one important factor of each of the following Pricing Approaches Demand-Oriented Pricing Approaches

Cost-Oriented Pricing Approaches

Profit-Oriented Pricing Approaches

Competition-Oriented Pricing Approaches

Answer 1

Pricing Approaches		Important factor
Demand-Oriented Pricing Approaches	Here customers tastes and preference are given more weights than other factors like cost, competition etc. This helps to understand the demand for a good from customer perspective	Customers tastes and preference
Cost-Oriented Pricing Approaches	Here the costs of raw materials are covered which helps to arrive at the total cost incurred in producing a good. By knowing the cost a profit margin in included to arrive at the price.	Costs of raw materials
Profit-Oriented Pricing Approaches	Here the price is fixed by trying to achieve a predetermined profit. So in order to achieve the a predetermined profit, pricing decisions varies	Predetermined profit
Competition-Oriented Pricing	Here pricing is dependent on competitors. So by looking at what the competitors are pricing, the pricing varies accordingly.	Competitors price