Regulations are designed to protect consumers, promote competition, and encourage ethical and fair behavior by businesses. Virgin Atlantic Airways and British Airways were also involved in price fixing for their flights.
The Economy and Government Laws and Regulations The economy also has a tremendous effect on pricing decisions. A company may want to use price to signal high quality and establish itself as the quality leader. For example, the waistband of sweatpants may stretch if you pull on it.
Price fixing When firms get together and agree to charge the same prices. The most straight-forward function is to identify the product or brand. Cost Plus Pricing A percentage is added to the costs as a profit margin to determine final price.
Similarly, the demand for a product may change if the price changes.
Video systems, LCD liquid crystal display manufacturers, auction houses, and airlines are examples of offerings in which price fixing existed. Thus, in stage one of the individual product decisions, we define the product attributes, such as quality, features, style and design.
The movies also charge different people different prices based on their ages and charge different amounts based on the time of day, with matinees usually less expensive than evening shows. The point at which total costs equal total revenue is known as the breakeven point BEP.
Products being part of it are all interrelated, their prices being in conjunction with each other. Developing and adopting logistics management for effective distribution of products Related Articles: External factors may include: Internal Factors These are those elements that are under the control of the organization.
Electronic and tech gadgets often start at a very high price which is subsequently lowered with the lowest point reached right before a new model is launched. Or will they believe the value is not equal to the cost and choose an alternative or decide they can do without the product or service?
Only features that add substantial value worth more than the marginal costs should be added.Individual Product Decisions – Decisions in the development and marketing of individual products written by Maximilian Claessens 13th May In the development and marketing of individual products (and services), individual product decisions need to be made.
Factors That Affect Pricing Decisions.
Previous. Next. the economy, and government regulations—and other aspects of the marketing mix, such as the nature of the offering, the current stage of its product life cycle, and its promotion and distribution.
When consumers are very sensitive to the price change of a product—that is. 1 Answer to Name and briefly describe the five product mix pricing decisions.
(AACSB: Communication) - The concept provides an overview of Pricing - one of the most important marketing mix decisions.
It offers a full description of the six steps which can be used as guidelines for implementing pricing decisions, and also offers well-documented examples.
By-product Pricing – Product Mix Pricing Strategies By-product pricing refers to setting a price for by-products to make the main product’s price more competitive. It is the result of the fact that producing products and services often generates by-products. Product (mix) consists of various decisions relating to product.
Product is the basic element of marketing mix because all other elements are required only when there is product. It is the center of all the marketing activities.Download