Price

Question 1

what is price

Answer 1

it is how much the customers have to pay for the products they purchase from the business `

Question 2

how to price for a product

Answer 2

businesses needs to consider the 3Cs of pricing

Question 3

what are the 3Cs of pricing

Answer 3

1. Costs
2. Customer’s willingness to pay
3. Competitor’s prices

Question 4

what does costs mean?

Answer 4

it refers to the amount of money pays for the production of their products

Question 5

What does customer’s willingness to pay

Answer 5

it means how much the business thinks the customers will pay for the products

Question 6

what does competitors prices mean

Answer 6

Usually businesses places a price on their products closer to their competitors. Lesser the price than the competitors, the more customers will be buying the product from the business

Question 7

what are the 5 pricing techniques

Answer 7

1. product-bundle pricing
2. product bundle
3. optical-product pricing
4. odd-even pricing
5. discount pricing

Question 8

explain “ product-line pricing “ and state one example

Answer 8

it refers to setting different prices for different versions for the same product

Example : There are 3 different types of seats on an airplane. Like Coach , business and first class. a lot of people choose coach seats as it is the cheapest. While business class and first class are priced higher

Question 9

explain “ product-bundle pricing “ and state one example

Answer 9

it refers to pricing a few related products and selling it at a lesser price

Example : the set meals that restaurants offers. in those set meals comes with a meal , a side and a drink. A lot of people pay for set meals as it is cheaper than the individual meals

Question 10

explain “ optical-product pricing “ and state one example

Answer 10

it refers to setting the prices of optical accessory products with the main product

Example : pizza restaurants lets the customers choose their own toppings and charge them extra for it

Question 11

explain “ odd-even pricing “ and state one example

Answer 11

it involves setting the prices just below and even amount ( odd number )

Example : instead of setting a price for a product for $50 , the business sells it for $49

Question 12

explain “ Discount pricing “ and state one example

Answer 12

it involves temporarily pricing products below the original price for a short time only.

Example : On special occasions, businesses cut down their prices for a limited time only. Instead of selling a product for $400 ( original price ) the business will sell it for $250 ( discounted price ) for a short period of time