Discuss the following competitive-orientated approaches to pricing:
(a) Product-analysis pricing
(b) Competition-oriented pricing
(c) Full-line pricing
a) Product-analysis pricing is a form of competition orientated or cost
orientated approach which is normally used by competition orientated
companies to fix their prices by referring to what the competitors are
charging without take into consideration the current costs and demand
of the product. It is most useful in heterogeneous market (a market
where the product is distinguishable from the competitors’ product and
cannot be easily substituted for another).
In simple terms, the product-analysis pricing is a value analysis
approach. Value-analysis approach is an approach to improve the
value of a product or process by understanding its constituent
components and their associated costs. Therefore the competition
orientated companies sets their price of their product by adding the
features and compare it to its competitors’’ model with more of fewer
features.
b) Competition-orientated pricing is also known as market-orientated
pricing. It is the pricing method in which a producer’s price determined
more by the price of a similar product sold by powerful competitor than
by considerations of consumer demand and cost of production. This
method is mainly common in oligopolistic environment (the competitive
(a) Product-analysis pricing
(b) Competition-oriented pricing
(c) Full-line pricing
a) Product-analysis pricing is a form of competition orientated or cost
orientated approach which is normally used by competition orientated
companies to fix their prices by referring to what the competitors are
charging without take into consideration the current costs and demand
of the product. It is most useful in heterogeneous market (a market
where the product is distinguishable from the competitors’ product and
cannot be easily substituted for another).
In simple terms, the product-analysis pricing is a value analysis
approach. Value-analysis approach is an approach to improve the
value of a product or process by understanding its constituent
components and their associated costs. Therefore the competition
orientated companies sets their price of their product by adding the
features and compare it to its competitors’’ model with more of fewer
features.
b) Competition-orientated pricing is also known as market-orientated
pricing. It is the pricing method in which a producer’s price determined
more by the price of a similar product sold by powerful competitor than
by considerations of consumer demand and cost of production. This
method is mainly common in oligopolistic environment (the competitive
