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Illustrate about the Demand Based Pricing
At times, prices are determined by the demand for product. Under this method, without paying much attention to cost and competitor's prices, marketers try to ascertain demand for the product. If demand is high they decide to take advantage and fix a high price. If demand is low, they fix low prices for their product. At times they resort to differential prices and charge various prices from different groups of customers depending upon their perceived values and capacity to pay. Take the case of cinema halls where rates of tickets differ for different sets of rows in the hall.
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Demand Based Pricing : Described methods belong to the category of demand / market based pricing:- 1. What the Traffic can Bear' Pricing 2. Skimming Pricing 3. Penetration
What is Competition Based Pricing In case of products where market is highly competitive and there is negligible difference in quality of competing brands, price is generally f
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