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In: Economics

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

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

Solutions

Expert Solution

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

Rahul Sunny answered 1 year ago
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