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Customer oriented or perceived value pricing
There is an increasing trend to price the product on the basis of the customer's perception of its value. This method takes into account all other elements of the marketing mix and the positioning strategy of the firm as the value of the product is a function of all these variables. This method helps the firm in reducing the threat of price wars.
In fact, it can help the firm steer out the ugliest of price wars. But the key to this method is to correctly understand customer's perception of product value and not to overestimate the firm's product value. Marketing research can play an important role here.
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can you better explain to me the classification by traceability and the classification by function?
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State Material price variance Difference among standard price and the actual price of the material is the material price variance. This variance arises because of various facto
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HOW TO CALCULATE MATERIAL ACCOUNTING
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