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Almost all the firms have more than one product in their line of production. Even the most specialized firms produce a
commodity
in multiple models, styles and size, each so much differentiated from the other that each model or size of the product may be considered a different products e.g.
the various models of television, refrigerators etc produced by the same company may be treated as different product for at least
pricing
purpose. The various models are so differentiated that consumers view them as different products. Hence each model or product has different average revenue (AR) and
Marginal
Revenue curves and that one product of the firm concepts against the other product. The
pricing
under this condition is known as multi-product
pricing
or product line
pricing
. In multi-product
pricing
, each product has a separate
demand curve
. But, since all of them are produced under one organization by interchangeable production facilities, they have only one inseparable
marginal cost
curve. That is, while revenue curves, AR and MR, are separate for each product, cost curves AC and MC are inseparable.
What else can I help you with?
Single product pricing and mult product pricing?
Single product pricing refers to a single purchase, such as one bottle of Pepsi. Multiple product pricing refers to purchasing more than one product at a time, such as a pallet of Pepsi.
What is the difference between cost plus pricing and marginal pricing?
Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.
What is pricing methods?
Pricing methods are a way to determine how a product will be priced. It basically is a planning process.
What is single product pricing?
Single product pricing is a strategy where a company sets a specific price for a single product, rather than for a range of products or services. This approach simplifies the pricing structure and can help target a specific market segment. It allows businesses to focus on the perceived value of that particular product, making it easier for consumers to understand and compare. Single product pricing is often used in scenarios where a product is unique or has distinct features that justify its price point.
What is captive-product pricing?
Pricing products that must be used with the main product. Like ink cartridges for the printer.
Single product pricing and mult product pricing?
Single product pricing refers to a single purchase, such as one bottle of Pepsi. Multiple product pricing refers to purchasing more than one product at a time, such as a pallet of Pepsi.
What is product mix pricing?
It's the pricing of the product
Explain how product form pricing may be a pricing option at Quills?
Explain how product form pricing may be pricing option at Quills?
How do you price product?
pricing a product depends upon the following factors which are1-product quality2-product features3-Product performance4-cost of production5-customer based pricing
What is the scope of product pricing?
The scope of product pricing encompasses various strategies and factors that influence how a product is priced in the market. This includes considerations like production costs, competition, market demand, perceived value, and pricing objectives (e.g., maximizing profit, increasing market share). Additionally, it involves evaluating different pricing models, such as cost-plus pricing, value-based pricing, and dynamic pricing. Overall, effective product pricing requires a comprehensive understanding of both internal and external market dynamics.
What is the difference between cost plus pricing and marginal pricing?
Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.
Examples of by-product pricing?
a pricing method used in situations where a saleable by-product results in the manufacturing process. If the by-product has little value, and is costly to dispose of, it will probably not affect the pricing of the main product; if, on the other hand, the by-product has significant value, the manufacturer may derive a competitive advantage by charging a lower price for its main product.
What is pioneer pricing?
Pioneer pricing is setting an initial price for a new product. This is quite essential as it will be the basis of judging how the product does in the market.
What is product bundling pricing?
Product bundle pricing is sellers combine several products at the same price. E.g software, books, CDs.
How is vodafone differ itself in term of product and pricing?
Optional-product pricing is when after the initial pricing of a product is offered additional accessories are offered for that product at a price. This is a pricing option that has gained popularity over the years. Many companies offer a savings on bundled accessories with the purchase of product. Some companies may include cable companies, car companies, cell phone companies, banks, etc.
What is hul product pricing?
pepsodent price
What is the example for product form pricing?
sardines
