Economics - Pricing Methods
thods2011
Assignment
Enrolment Number
Annamalai University
Director of Distance Education
MBA xxxxxxxxxxxxxxxxxx 1st year
Assignment Topic
1.2 Management Economics
Self Declaration
I declare that the assignment submitted by me is not a verbatim/photo static copy from the websites/ books/ journals/manuscripts.
Signature of the student
Countersigned
Signature of the Faculty Concerned
Q 4. Explain pricing methods and which method will be suitable in this present age ?
Let us discuss about various pricing methods of determination of price.
Introduction
No doubt that the economic theory focuses upon the determination of prices in various competitive situation but it does not discuss the methodology of price determination. Consequently, it fails to help manager to fix price for the products and services. Of course, it has been already explained that one of the factors that affect price determination process is competitive situation in the market. hence, economic theory discussion, in the context of methodology is not irrelevant.
In a free market economy price do not stagnate at any one point. They always fluctuate depending upon the number of external and internal business environment.
Pricing Methods - Classification Price is the value of a products denoted in terms of money. it is the amount paid by a buyer to a seller for a unit of product or service. A firm may adopt various price policies for the product produced by it. these alternative pricing methods can be classified into two major groups as shown in the chart given below. Methods based on costs of products and methods based on market condition.
Pricing Methods
1. Established Price 2. 2. Leadership price 3. 3. Penetration pricing 4. Skimming the cream policy 5. Charges what the traffic will bear 6. Psychological pricing
7. Established Price 8. 2. Leadership price 9. 3. Penetration pricing 10. Skimming the cream policy 11. Charges what the
Assignment
Enrolment Number
Annamalai University
Director of Distance Education
MBA xxxxxxxxxxxxxxxxxx 1st year
Assignment Topic
1.2 Management Economics
Self Declaration
I declare that the assignment submitted by me is not a verbatim/photo static copy from the websites/ books/ journals/manuscripts.
Signature of the student
Countersigned
Signature of the Faculty Concerned
Q 4. Explain pricing methods and which method will be suitable in this present age ?
Let us discuss about various pricing methods of determination of price.
Introduction
No doubt that the economic theory focuses upon the determination of prices in various competitive situation but it does not discuss the methodology of price determination. Consequently, it fails to help manager to fix price for the products and services. Of course, it has been already explained that one of the factors that affect price determination process is competitive situation in the market. hence, economic theory discussion, in the context of methodology is not irrelevant.
In a free market economy price do not stagnate at any one point. They always fluctuate depending upon the number of external and internal business environment.
Pricing Methods - Classification Price is the value of a products denoted in terms of money. it is the amount paid by a buyer to a seller for a unit of product or service. A firm may adopt various price policies for the product produced by it. these alternative pricing methods can be classified into two major groups as shown in the chart given below. Methods based on costs of products and methods based on market condition.
Pricing Methods
1. Established Price 2. 2. Leadership price 3. 3. Penetration pricing 4. Skimming the cream policy 5. Charges what the traffic will bear 6. Psychological pricing
7. Established Price 8. 2. Leadership price 9. 3. Penetration pricing 10. Skimming the cream policy 11. Charges what the