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Competition based pricing is a price set by a company for a product to compete with another company's pricing. Production and distribution costs are ignored to drive demand towards another brand. This method of pricing can cause a long-term decrease in product perception and decrease a product's value for future profits.

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Advantages of Competition Based Pricing?

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When a company sets a low price for a new product to discourage competition from entering the market it is using the?

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Advantages and disadvantages of value-based pricing approach?

The advantage of value based pricing is increased profits and customer loyalty. The disadvantages are labor cost, competition, and the niche market.


What are the different theories of price determination?

Some common theories of price determination include supply and demand, cost-based pricing, value-based pricing, and competition-based pricing. These theories suggest that prices can be influenced by factors such as production costs, consumer demand, perceived value, and pricing strategies of competitors in the market. Different industries and situations may favor one theory over the others.


How does competition affect pricing and marketing strategies?

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What are the Types of pricing strategies of tesco?

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How do you decide on the prices they charge to their customer's?

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.


What is the differences between cost-based pricing or market-based pricing?

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Disadvantages of Cost-Based pricing?

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Explain the differences between value-based pricing and cost-based pricing?

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