Discuss the following competitive-orientated approaches to pricing:
(a) Product-analysis pricing
(b) Competition-oriented pricing
(c) Full-line pricing
a) Product-analysis pricing is a form of competition orientated or cost
orientated approach which is normally used by competition orientated
companies to fix their prices by referring to what the competitors are
charging without take into consideration the current costs and demand
of the product. It is most useful in heterogeneous market (a market
where the product is distinguishable from the competitors’ product and
cannot be easily substituted for another).
In simple terms, the product-analysis pricing is a value analysis
approach. Value-analysis approach is an approach to improve the
value of a product or process by understanding its constituent
components and their associated costs. Therefore the competition
orientated companies sets their price of their product by adding the
features and compare it to its competitors’’ model with more of fewer
features.
b) Competition-orientated pricing is also known as market-orientated
pricing. It is the pricing method in which a producer’s price determined
more by the price of a similar product sold by powerful competitor than
by considerations of consumer demand and cost of production. This
method is mainly common in oligopolistic environment (the competitive
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller reigntutorstc90. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R100,00. You're not tied to anything after your purchase.
