Week 5.3

• Price System in a Market Economy

  1 Demand

  2. Purchasing power(effective demand)
• will help us to make everyday economic decisions about our needs and desires.

  Prices
• They are the indications of the acceptance of a product, the more popular the product, the higher the price that can be charged.

  Prices
• are decided by interactions between the producers and consumers.

  Prices
• If a good is in shortage

  Price will tend to rise
• *If a good is in surplus

  Price will tend to fall
• is one pricing strategy to consider. If implemented well, it can help you outperform your competitors and increase your revenue.

  Market Based Pricing
• three types of market-based pricing:

  At Market - A M

  Below Market - B M

  Above Market - AB M
• It is a market based pricing where your price matches or remains close to those of your competitors. Products or services that are largely indistinguishable across providers often follow at-market pricing.

  At-Market pricing
• It is a market based pricing where Your price is below those of your competitors. It may appeal to budget-conscious consumers.

  Below-Market
• Is is a market based pricing where your price is greater than those of your competitors. Products or services that offer more features or overall value to the customer often have this. This is also common for prestige brands or those with loyal followings.

  Above-Market
• It is an element of market based pricing that means customers may be willing to pay more for it. If your offering provides more features or greater value than that of competitors, it may be reasonable to price it above market

  Demand
• It is an element of market based pricing that lertains to the cycle of a product, starting from its introduction to the price decline to attract more consumers

  Product life cycle
• it is an element of market based pricing that refers to the volatility of demand for a product or service in response to price changes

  Price sensitivity
• It is an element of market based pricing that pertains to an organizations that offer substitutes, or products or services that are identical or similar to yours

  Competitors
• It is an element of market based pricing that pertains to the general attitude of customers toward a product or service can also influence market pricing. If consensus states that an offering is not worth paying above a certain price point, people are unlikely to pay for it

  Public perception
• What are the elements of a market- based pricing strategy

  
1 D - Demand

  2. P - Product Life Cycle

  3. P - Price Sensitivity

  4. C - Competitors

  5. P - Public perception

  6. B - Business expenses
• What are the elements of a market- based pricing strategy

  
1 D - Demand

  2. P - Product Life Cycle

  3. P - Price Sensitivity

  4. C - Competitors

  5. P - Public perception

  6. B - Business expenses
• What are the elements of a market- based pricing strategy

  
1 D - Demand

  2. P - Product Life Cycle

  3. P - Price Sensitivity

  4. C - Competitors

  5. P - Public perception

  6. B - Business expenses
• What are the elements of a market- based pricing strategy


  1 D - Demand

  2. P - Product L

  ife Cycle

  3. P - Price Sensitivity

  4. C - Competitors

  5. P - Public perception

  6. B - Business
• What are the elements of a market- based pricing strategy


  1 D - Demand

  2. P - Product Life Cycle

  3. P - Price Sensitivity

  4. C - Competitors

  5. P - Public perception

  6. B - Business
• Advantages of using a market-based pricing strategy

  Low risk - l

  Simplicity - S

  Improved Profits- I
• What are the challenges of a market based pricing strategy

  Focus away from consumers - F

  Underselling - U

  Sustainability - S