Explain competition-based pricing
What will be an ideal response?
Competition-based pricing involves setting prices based on competitors' strategies, costs, prices, and market offerings. Consumers will base their judgments of a product's value on the prices that competitors charge for similar products. In assessing competitors' pricing strategies, a company should consider several factors. First, it must find how the company's market offering compares with competitors' offerings in terms of customer value. If consumers perceive that the company's product or service provides greater value, the company can charge a higher price. If consumers perceive less value relative to competing products, the company must either charge a lower price or change customer perceptions to justify a higher price. Next, the company should determine the strength of its current competitors and their current pricing strategies. If the company faces a host of smaller competitors charging high prices relative to the value they deliver, it might charge lower prices to drive weaker competitors from the market. If the market is dominated by larger, lower-price competitors, the company may decide to target unserved market niches with value-added products and services at higher prices. Finally, no matter what price the company charges — high, low, or in between — it must try to give customers superior value for that price.
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A major difference between the memorandum format and the letter format is
a. the memo omits the salutation and complimentary close. b. the memo double spaces paragraphs. c. the memo omits reference initials. d. the memo must be printed on a memo form.
What is the shadow price for fabrication?
What will be an ideal response?
Trying various approaches and picking the one resulting in the best decision is called incomplete enumeration
Indicate whether the statement is true or false
Using surveys to conduct marketing research is an example of environmental analysis.
Answer the following statement true (T) or false (F)