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3 years ago

Advantages of value based pricing

1 answer:

8 0

The first and foremost advantage of using Value based Pricing is the increased value of the brand. The high price of products makes people think that the product is of superior quality. Thus, the value of brand increases in the eyes of customers.

Value based Pricing helps in increasing the profits of the company. If your customers value your product and are willing to buy it at any price, then you have the opportunity to charge a high price for the product, and in this way, you can generate higher profit by selling the same units of products.

Companies ask their customers about their requirements and willingness to pay the price for the product. When you consider the opinion of your customers and create products to satisfy their needs, then they also feel loyal to your company.

Value based Pricing gives you a rough idea of the demand for your product in the market. You will know the approximate number of customers who can afford your product and are willing to pay high prices to buy your product. Having the idea of the demand for a product in the market helps a business to create supply accordingly.

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Nokia’s loss of market share of U.S. cell phone business is a result of __________

Kipish [7]

Answer:

The correct answer is: conscious strategic decisions made by the company.

Explanation:

Finnish Company Nokia reported a $1,36 billion loss in sales by 2009 because of the decrease of 20% in sales worldwide during that year and 25% only in the United States the previous year. Even if the company is trying to recover nowadays, the emerging of new technology and competitors is still a struggle for the firm. Back in 2009, they were forced to give up part of their market share in order to restructure the company. This represents a well-thought strategy carried out by them if they wanted to still be in the business.

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3 years ago

Assume company x deposits $100,000 in cash in commercial bank. If no excess reserves exist at the time this deposit is made and

kodGreya [7K]

Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.

Reserve ratio = 20% = 20/100 = 0.25

Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000

Reserve ratio = Rerserve / Deposit

=> Reserves = 0.25*100,000 = 25,000

Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio

= $ 400,000 + 100,000

= $ 500,000.

The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to

Learn more about the commercial banks at

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2 years ago

Nipennie and Mirasa, two developing countries, bartered cotton for jute rather than for currency. In this scenario, the two coun

34kurt

Nipennie and Mirasa, two developing countries, bartered cotton for jute rather than for currency. In this scenario, the two countries engaged in counter-trade.

Explanation:

Counter-trade is an internal mode of trade through which products and services are traded instead of hard currency for any other products or services. For developing nations with restricted exchange or credit services, this form of global trade is more prevalent.

Counter-trade can be divided into 3 main categories: trade, counter purchase and reimbursement.

The earliest counter-trade practice is bartering. An important advantage of counter trade is that it makes foreign exchange savings simpler. Complex agreements, increased costs and logistic problems are rising drawbacks of counter trade.

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3 years ago

A mentor is generally a(n):

Leno4ka [110]

The answer is e. an experienced person who disseminates knowledge.

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3 years ago

Suppose that two graduating seniors, one a marketing major and one an accounting major, are comparing job offers. the accounting

vodka [1.7K]

<span>1935000000 that is the answer to your math</span>

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3 years ago