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प्रश्न
State two disadvantages of Cost plus pricing policy.
संक्षेप में उत्तर
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उत्तर
- It is very often difficult to determine accurately the cost per unit due to common overheads and joint products. The method involves arbitrary allocation of costs in such cases.
- The method ignores the nature and level of demand. The resulting price may, therefore, be out of line with market conditions.
- It fails to reflect competition in the market.
- The mark-up on the cost of the product is not fixed but may change with changes in demand. In practice, the rule of thumb methods are used to determine the mark-up.
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Price - Pricing Strategies
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
संबंधित प्रश्न
State any two advantages of cost-plus pricing strategy.
Explain the below mentioned pricing strategy:
Skimming pricing strategy
______ price refers to the high initial price charged when a new product is introduced in the market.
Selling price = Total cost per unit + Desired profit per unit is the formula to fix prices under which Pricing Strategy?
Mention the advantages of cost plus pricing.
Give one difference between skimming pricing and penetrating pricing.
What is Cost plus pricing policy?
| Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
What pricing strategy will be used to launch a high-end smartphone?
What pricing strategy will be used to launch shampoo?
