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Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries and over time, with the maturing of industries and markets and changes in wider economic conditions. [2] Pricing strategies determine the price companies set for their products. The price can be set to maximize profitability for ...
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. It usually entails raising prices during periods of peak demand and lowering prices during ...
Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [1] [2] An alternative pricing method is value-based pricing. [3]
As a part of this deal, Google acquired a 15.7% stake in Arris Group valued at $300 million. [346] [347] On January 29, 2014, Google announced that it would divest Motorola Mobility to Lenovo for $2.91 billion, a fraction of the original $12.5 billion price paid by Google to acquire the company. Google retained all but 2000 of Motorola's ...
Value-based price, also called value-optimized pricing or charging what the market will bear, is a market-driven pricing strategy which sets the price of a good or service according to its perceived or estimated value. [1]
Yield management (YM) is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats, hotel room reservations, or advertising inventory). [1]
A common pitfall of good–better–best is cannibalization, where customers who could afford the "better" option instead opt for the "good" option to save money.. Marketers discourage customers from downgrading by implementing "fence attributes," such as by making "good" hotel rates non-refundable, or by making the least expensive concert tickets general admission, with no assig
Pricing is the process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan.In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of the product.
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