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When a company uses a volume-pricing objective, it is seeking sales maximization within predetermined profit guidelines. A company using this objective prices a product lower than normal but expects to make up the difference with a higher sales volume.
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What are four pricing objectives?
Four pricing objectives are competitive, prestige, profitability, and volume pricing.
What is the purpose of cost based pricing?
The main purpose; in my opinion; is to have reasonable pricing for any good that is convenient to the customer and in the mean time assuring a reasonable net profit to the dealer.
What is Target return-on-sales pricing?
A firm may set an annual target of a specific dollar volume of profit, which is called target profit pricing.
What is the purpose of measuring volume of an area?
to measure volume the object must be three dimensional. the purpose of measuring the volume of an area is to know its capacity
What is the purpose of seasonal pricing?
The price for a product can also be adjusted based on seasonal demands. Seasonal pricing will help move products when they are least salable.
By what means do companies try to increase the sales of a product?
Companies have several options available for increasing the sales of a product: coupons, prepayment, price shading, seasonal pricing, term pricing, segment pricing, and volume discounts.
What is the purpose of back combing?
Volume
What is penetration-pricing strategy?
Penetration-pricing strategy is used to build market share by obtaining profits from repeat sales. Occasionally, high sales volume allows sellers to further reduce prices.
How will you react to competitor challenges such as under pricing or new products that make yours obsolete?
Redefine your product and its purpose
What is the purpose of Cost volume profit analysis?
b
What is the idea behind volume discounting?
A common method used by a company to price a product is volume discounting. The idea behind this pricing strategy is simple: If a customer purchases a large volume of a product, the product is offered at a lower price.
What are the different pricing methods in international marketing?
Bid Pricing Cost Plus Pricing Customary Pricing Differential Pricing Diversionary Pricing Dumping Pricing Experience Curve Pricing Loss Leader Pricing Market Pricing Predatory Pricing Prestige Pricing Professional Pricing Promotional Pricing Single Price for all Special Event Pricing Target Pricing
