Answer questions Essay Example | Topics and Well Written Essays - 2000 words

Answer questions - Essay ExampleValue based determine focuses on the usability and value a product adds to the life of the consumer. Rather than fixing prices with the intention of covering the cost incurred in product of a product, a order fixes the price depending on the value it adds to the consumers life. Value can be measured in terms of increased efficiency in conducting business activities, advance in general standards of living and other qualitative measures. Examples of businesses that use this strategy include software companies and producers of medical products.Being a computer and electronics company that seeks to authorise the computing needs of our clients, we use the value that the product adds to the lives of our clients to determine how much it is worth. The company also produces a number of personalized software products for its clients. This is a erect strategy because rather than concentrating on the metrics in terms of cost of coming up with a product, the company is more concerned with the utility that a client derives from it. It makes no sense for a customer to pay for a product just to cover the cost of producing it while it adds no value to his/her life. handed-down approaches of penetrating the food market favor charging a low price for a product when a business enterprise is initially entering into a market niche. Chances are high that there were previously existing businesses on the market before it came in and therefore, charging lower prices may capture the attention of the target market. formerly it has established a reliable customer base and gained ground in the market, it should take advantage of strategies such as increasing prices or large-scale production to boost profits. This is effective in countering competition especially because of the seemingly low profits.Skimming on the other hand favors charging high prices for products as they are universe introduced into the market. The main aim