Question

1. Business School: "Each student in the class was given large amounts of information about a particular firm and asked to determine a pricing strategy for the firm. Most of the students spent hours preparing their answers and came to class carrying many sheets of paper with their calculations." This student, though, reportedly came up with the correct answer in just minutes. When his professor called on him for his answer, he stated: "The case said the XYZ company was in a very competitive industry... and the case said the company had all the business it could handle." a. The student's response was greeted with thunderous applause from his classmates. Given this information, what price do you think the student suggested? Explain. (4 pts)

Answer 1

a. At the point when an item is valued as per what the challenge is charging, it's known as competitive pricing. It is one of the four significant pricing procedures received by generally organizations. The other three incorporate, cost-plus methodology, where a prefixed net revenue is included over the complete cost of the item, request pricing, under which the cost is set by setting up the ideal connection among volume and cost, and markup pricing, where a rate is included (as benefit) over the discount cost of the item.

n request to set up the privilege competitive cost for your item, you have to consider the item life cycle and the stage your item is in. Rivalry is one factor that you can overlook if your item is in the formative stage. In any case, if it's a piece of the market, and battling with a moderately high number of substitutes and contenders, at that point considering the activities of your rivals may be one factor driving your benefit. You have three options value your item lower, higher, or same as your rival. The most well-known strategy is to set the value as per the contenders, otherwise called competitive pricing technique.