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"The buyer should aggressively and continually pursue data helpful to assessing the external variables affecting pricing strategy. Information concerning new versus mature products, product differentiation, product life cycle, the competitive environment, product demand, and industry capacity can all be obtained through careful attention to various industry, trade association, financial, and government publications. Factoring each of these external variables into the process which favors one pricing approach over the others allows the buyer to draw conclusions regarding the seller's proposed price."

In essence, by doing market research.

The paragraph was taken from Lamm and Vose article - Seller and Pricing Strategies: A Buyer's Perspective

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12y ago

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