how does competition-oriented pricing differ from cost-oriented and demand-oriented pricing?
489822
Competitive pricing is a method of pricing in which a manufacturer's price is determined more by the price of a similar product sold by a powerful competitor than by considerations of consumer demand and cost of production. \n\nBranding and Niche Marketing are to competition-oriented pricing strategies.\n\nA brand strategy is a statement of the brand’s sustainable competitive advantage, usually consisting of a demographic and psychographic description of the intended customers and the benefits they get from the brand. The brand strategy statement is developed within a competitive framework. \n\nNiche strategy is focusing exclusively on a particular demographic or geographical area
814383
demand.\n\nok, the price that can be set for a product and the amont of profit that can be made is automatically set by the relationship between how many people want it and how much there is of the product. if demand is high and the suply is low the price will rise and if demand is low and the suply is high the price will fall. stablity is achived when the two are balanced.
1161203
Yes, they are different.\n\nElasticity of demand is the change in quantity demanded associated with a change in price.  This is the slope of the demand curve.  This slope is always negative.  The lower the price, the higher the demand and vice versa.\n\nElasticity of supply is the change in quantity supplied associated with a change in price.  This is the slope of the supply curve.  This slope is always positive.  The higher the price, the higher the supply and vice versa.\n\nLet's take a simple example.  Movie tickets increase by $1.  As a result movie attendance decreases by 10%.  The elasticity of demand would be -0.10%.  For every $ increase in price, quantity demand drops by 10%.  However, given the same increase in price there is a 20% increase in movie showings.  For every $ increase in price, quantity supplied increases by 20%.   \n\nFor any business venture, you have to price your product and services with a good understanding of the elasticity of demand.  Depending on such elasticity, it does not make sense to increase price beyond the point where your revenues and income break even with where they were in your original price structure. \n\nElasticity of supply deals more with the operation structure of the industry you operate in and external competition. \n\nIf you want me to clarify any of the above, please contact me through "Answer."
1165762
The higher the demand for any good or service, the more the supplier can charge. For example, gas is a necessity, so the supplier can exploit our need for it by making us pay whatever they want...we are at their mercy. \nIf gas was not a necessity and we could do without it, it would be alot cheaper.\nBusiness succeed when they give the consumer what they want or need. The better the product/greater the need, the more of a desired object it is and the business can take liberty at raising the price.\nProducts that are not as desirable, for whatever reason, don't have such a "pull" for price hikes.
70623
It's all about supply and demand\n\nhttp://en.wikipedia.org/wiki/Supply_and_demand
281846
Question is too general. There are many. Pricing strategy depends on whether u r the market leader or the follower.And so does ur positioning strategy.
950446
Cost to produce/market the product.\nGoing rate for similar products.
652911
The amount of choices produces competition between proveiders of product to the consumer.  This competition forces lower pricing which is why free markets are superior to state controlled market pricing.  Necessary?  No, but I would rather have the choice than a higher price.
1035355
A market is said to be efficient if it operates under pure competition and the following four conditions are satisfied:\n\n1) Numerous participants- each seller and puchaser constitutes so small a proportion of the total market that his output or purchase decisions have no effect on the price.\n\n2) Homogeneity of product- as far as any buyer is concerned, the product  offered by any one seller is identical to that supplied by every other seller.  As a result, the buyer does not care whom he buys.\n\n3) Freedom of entry and exit- new firms desiring to enter the market can do so on terms as good as those available to firms already there.  Similarly, if production and sale of goods proves to be insufficiently profitable, there are no special impediments preventing firms from leaving the market.\n\n4) Perfect information- each firm and each customer is well informed about the available products and their prices.
800089
markup on cost, you paid $1 sell for $2 your markup is 100%\n\nmarkup on price, same input, your markup is 50%
338975
Because the planning of producers rarely matches the whims of buyers.  It's that simple.\n\nThe resulting pricing is a function of the difference between supply and demand.  Let's say, for example, that a company produces 10,000 units of a new product.  If only 2,000 buyers are interested, there is over-supply - which is generally remedied by lowering the price.  Going the other way, if 100,000 buyers are interested, there is a shortage - demand exceeds supply - and you can charge whatever the buyers will bear to be the 1 in 10 who actually gets the product.
402568
Although you have 2 variables, 1 of them has a constraint - i.e. there is not an unlimited # of items per hour that can be boxed.\n\nIn your example, it's now costing you $1.80 per item. If, for example, the maximum (or optimum) # of items that could be boxed per hour was 100, then that cost is $0.18 per item. Paying $1.62 per box would be the break even point.\n\nTo analyze this further, you need to keep one of the variables constant and then look at the effect of the other variable.
575115
1) direct cost or the price paid by the customer\n\n2) search costs - information search (relevant only in complex buying behavior)\n\n3) transportaion costs - is it available athis convinience\n\n4) transaction cot - included time he need to wait for billing, order etc...
464982
Because they produce less quantity at a higher price than with perfect competetion.  This is not Pareto optimal.\n\nAlso, they might become complacent and stop innovating because there's no real incentive without competition.
183872
Well, actually it would depend on the rates of increase.  Theoretically, if demand and supply increase at matching rates, then the price should remain pretty stable.  This is assuming demand = 1 and supply = 1.  If demand increases at 1 and supply increases at 2, then the price might go down, for example.  (This also does not take into account marketing strategies and other variables!)
432020
The biggest problem is Price fixing.  Naturally when two or more companies are competing for business this competition will drive down prices for their product or service.  This benefits the consumer.  If there is collusion between these companies they can set the prices without regard to competition.
926183
The first answer is yes.  \n\nIn perfect competition when price is greater than MC then the producer will still produce.  I don’t know what you mean by taxing.  The perfect competitor will sell as many units as it can produce before marginal cost exceeds demand.  So the answer is No if you mean are they collecting more consumer surplus.  \n\nA monopoly is able to raise the price above equilibrium.  Therefore it reduces the amount of goods it generates to equal the maximum profit point (the quantity where MC = MR). This is always less quantity than the equilibrium and therefore the price is higher per unit.  The reason it is the profit maximizing point is because it allows the company to capture some of the consumer surplus and therefore make more profit.  If there was more competition there would be firms fighting the monopoly and undercutting thier profit maximizing point, thereby reducing economic profit and giving more value to the consumers.  \n\nYour question is not totally clear but I believe that is what you are asking.