Answer: a. I prefer EDLP pricing, b.set one price and not deviate
Explanation:
Markup pricing Target Return Pricing
Markup pricing Method is a pricing method where the price of a product is determined by adding a Predetermined fixed percentage to the cost of the product. Example If the markup is 30% and the products costs $50 per unit then the Price will be $65, which is $50 + ($50 x 30/100) = $50 + $15 or Simply $50 x 130%/100 = $65. Mark up pricing is recommended when the business purchases and sells a large number of units and the unit cost for each product is constant.
Return Pricing is similar to Return pricing. The Target Return is Calculated by Add a percentage return an investor wants to earn to the cost of investment or to the amount invested.
Perceived Value Pricing
Perceived Value Pricing Method is a customer or Consumer Based Pricing Method. The price of a products is determined by how much a customer is willing to pay for the product. Perceived Value Pricing works well if the product has a Sentimental Value or When the product Image or Brand is highly valued in the minds of customers. Luxury Goods like jewellery products are priced using this method most of the time.
Value Pricing
Value Pricing is a pricing Strategy that focuses on customers to determine prices. The price of a producing under Value Pricing is determined by how much the customer believes the product is worth. The Value that Customers place on the product is the driving force in price determination. Products are Priced according to how much a customer wants to pay for the product.
EDLP Going-rate pricing
Every Day Low Prices (EDLP) is a pricing system when the business charges low prices for every product in other words Low pricing are charges consistently. Going Rate Pricing is a pricing system when the pricing of a product is determined using the current Market rate (market prices) for the products.
Auction Type pricing
Auction Type Pricing system simply means that the Pricing is determined by the Highest Price the consumers wants to pay for the product. This strategy is formed under the principle of "a Good is sold to the highest Bidder"
as a Consumer which do your prefer?
I prefer EDLP Pricing Method
The main aim for every consumer out there is to get more value for a lesser price., with the EDLP pricing Method, a business charges lower prices for every product which means even product that we (as consumers) Value highly are sold at a lower price hence we get them at a lower price.
If the average price were to stay the same
If the average price were to stay the same, I would prefer an organisation to set one price and not deviate. wen a business charges slightly highly prices than average prices, the business will loose sales for the better part of the year (assuming this is perfect competitive market). The discount and special will generate more sales but it will be enough to cover the sales revenue lost for major part of the year. setting a competitive price and not deviate is a better strategy because sale will be higher for the better part of the year
