Answer:
Different pricing strategies have different impacts on the demand, revenue, and profit of a product or service. Some common pricing strategies are:
Cost-based pricing: Setting the price based on the cost of production plus a markup. This strategy ensures that the price covers the cost and generates a profit, but it may not reflect the value perceived by the customers or the market conditions.
Value-based pricing: Setting the price based on the value perceived by the customers. This strategy allows the seller to capture more value from the customers who are willing to pay a higher price, but it may be difficult to estimate the customer’s willingness to pay or to segment the market accordingly.
Competitive pricing: Setting the price based on the prices of the competitors. This strategy helps the seller to stay competitive and attract customers, but it may lead to price wars or reduced profit margins.
Explanation:
Answer:
they have different impacts on demand
Explanation:
