pricing methods

the approaches used by firms to PRICE goods or services. Three basic pricing methods may be distinguished:

a COST-BASED PRICING method which relates the price of a product to the costs involved in producing and distributing it;
a DEMAND-BASED PRICING method which relates the price of a product to the intensity of total demand for it and acknowledges differences in demand intensities between subgroups of buyers;
a COMPETITION-BASED PRICING method which relates the price of a product to the prices charged by rivals. In practice, firms use a combination of these methods in setting their prices. Other pricing methods include: conversion cost pricing, target pricing, variable-cost pricing, marginal-cost pricing and return on investment pricing. See PRICING OBJECTIVES, PRICING POLICY.

单词	pricing methods
释义	DictionarySeepricingEncyclopediaSeePricing pricing methods pricing methods the approaches used by firms to PRICE goods or services. Three basic pricing methods may be distinguished: a COST-BASED PRICING method which relates the price of a product to the costs involved in producing and distributing it; a DEMAND-BASED PRICING method which relates the price of a product to the intensity of total demand for it and acknowledges differences in demand intensities between subgroups of buyers; a COMPETITION-BASED PRICING method which relates the price of a product to the prices charged by rivals. In practice, firms use a combination of these methods in setting their prices. Other pricing methods include: conversion cost pricing, target pricing, variable-cost pricing, marginal-cost pricing and return on investment pricing. See PRICING OBJECTIVES, PRICING POLICY.
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