In pricing a product cost works as a floor and customer perception of the value of a product works as a guide to price a product. Explain why it is a good idea to price a product according to value perception of the customers. Also give some examples of products in which the company has used value-based pricing technique
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
In pricing a product cost works as a floor and customer perception of the value of a product works as a guide to
price a product. Explain why it is a good idea to price a product according to value perception of the customers.
Also give some examples of products in which the company has used value-based pricing technique ?
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