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प्रश्न
State two disadvantages of Cost plus pricing policy.
उत्तर
- It is very often difficult to determine accurately the cost per unit due to common overheads and joint products. The method involves arbitrary allocation of costs in such cases.
- The method ignores the nature and level of demand. The resulting price may, therefore, be out of line with market conditions.
- It fails to reflect competition in the market.
- The mark-up on the cost of the product is not fixed but may change with changes in demand. In practice, the rule of thumb methods are used to determine the mark-up.
संबंधित प्रश्न
Explain the below mentioned pricing strategy:
Penetrating pricing strategy
______ price refers to the high initial price charged when a new product is introduced in the market.
Factors which do not influence price determination is ______.
The main aim of penetrating pricing is to ______.
______ determines the sales volume and the profit margins.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
Give one difference between skimming pricing and penetrating pricing.
Identify two desirable conditions under penetrating pricing.
What pricing strategy will be used to launch a high-end smartphone?
Discuss the cons of Penetrating Pricing Policy.
