Discuss the three major pricing strategies. Compare cost-based pricing with value-based pricing. What role does Customer Perceived Value play in pricing? Why is market strategy (segmentation, target market, differentiation, and positioning), as well as market demand and environmental factors important considerations in pricing decisions? Please select two products or services and discuss how they illustrate two of the pricing strategies. You cannot select Apple, Starbucks, Nike, or any company you have used previously. Discuss the challenges faced by companies launching new products under each of these strategies.
a) Cost-based pricing focuses on production expenses.
b) Value-based pricing emphasizes the perceived worth to customers.
c) Customer Perceived Value influences pricing strategies.
d) Market strategy and environmental factors impact pricing decisions.