Meg Wants to Start a Gym in Her Hometown

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Examlex · Accepted Answer

The Answer is Student answers will vary.They should reference at least one of the following.
· Cost-based methods: As the name implies, cost-based pricing methods determine the final price to charge by starting with the cost.Cost-based methods do not recognize the role that consumers or competitors' prices play in the marketplace.Although relatively simple compared with other methods used to set prices, cost-based pricing requires that all costs can be identified and calculated on a per-unit basis.
· Competitor-based methods: Most firms know that consumers compare the prices of their products with the different product/price combinations that competitors offer.Thus, using a competitor-based pricing method, they may set their prices to reflect the way they want consumers to interpret their own prices relative to the competitors' offerings.
· Value-based methods: Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering as perceived by the consumer.Consumers determine value by comparing the benefits they expect the product to deliver with the sacrifice they will need to make to acquire the product.

Meg Wants to Start a Gym in Her Hometown

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Meg Wants to Start a Gym in Her Hometown

Essay

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Correct Answer:
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