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skimming pricing is for new or innovative product, the price at the begining is high and customers are not price sensitive. penetration pricing set a low price at the begining to gain a mass market, and the price will rise later. The customers are price sensitive.
A free market must be fueled by supply and demand, not be controlled by a government, be able to directly set pricing, and not be affected by laws.
One of the benefits of a free market system is that you can shop for the best deal since pricing is not set. Another benefit is that anyone can enter the market.
Prices are typically determined based on factors such as production costs, competition pricing, market demand, and the perceived value of the product or service. Companies may also consider pricing strategies like cost-plus pricing, value-based pricing, or competitive pricing to set prices that are attractive to customers while still generating profits. Regularly reviewing and adjusting prices based on changes in the market or customer preferences is also important for maintaining competitiveness.
Pricing strategies of traditional food is determined by the traditional food market. They will set a price based off the demand. Usually in a normal graph you would choose the equilibrium price of traditional food.
Ultimately, the government is trying to protect the consumer. Predatory pricing is used to drive a competitor out of a market, or keep a potential competitor from entering a market. If successful, the entity employing predatory pricing tactics can maintain a monopoly (or near monopoly) in a market and use the lack of competition to set prices anywhere it wants. The consumer, having no choice in a marketplace, is forced to pay whatever the entity chooses to charge.
Perfect markets refer to markets where there is competition and sellers are price takers. An imperfect market refers to markets that have a dominant seller and they are able to set the price.
Similarity is that both tend to push the price levels `lower' Difference is in the `objective' or `orientation' or `thought' behind the pricing strategy Penetration Pricing is when the price is pegged at a rate that very price-sensitive segments find acceptable. e.g. Nokia 1100 when introduced in Indian markets. The objective is to open up newer market segments Predatory Pricing is when prices are set lower than average selling prices of industry and competitors. Objective is to put pressure on competitors and price them out of the market
In Monopoly, there is no market power as the monopoly firm is the only supplier and holds pricing power. However in a perfect competitive market, prices are set by interaction of supply and demand. This is why monopoly markets are undesirable relative to perfect competitive market.
Standard pricing for the wholesaler is purchase cost from the manufacturer plus 40%.
when both factors in the set were dominant, the plant showed the dominant trait.
The price at which a product clears or set to be competitive or strategic for a product or product line, as set (arbitrarily, by guessing or through market research) by a marketing or pricing or market research analyst.