What is price?
Pricing is core of competition a reasonable price can attract the consumer most. Moreover, pricing is another stage where business needs to concentrate to appropriate it according to the market competition and consumer needs. The common pricing model which is normally applied by maximum business practices is to format cost of product and add its expenses and the net profit. Though, considering the price from the consumer point of view or value based pricing model is most appropriate especially for new products. It plays most critical part in making mind of consumers to purchase product or services.
What factors will impact pricing strategy?
For a new product it is quite compulsory to have a marketing factor in the pricing model. Moreover, another factor which is very essential especially in the global product is to evaluate the market segmentation properly. Therefore, market segmentation plays pivotal role especially with international market standing. According to my evaluation mostly two factors impact on pricing strategy. One is consumer purchasing power and other one is market environment or market competition. Every business has to design its pricing model according to the consumer purchasing power and have to consider the competition in the market (Armstrong & Kotler, 2008).
What pricing method would you use for your product/service and why?
I think product or business is about considering and analyzing the target market or specifically the consumers. Therefore, I consider that the most prime pricing method should be value-based pricing method. Because, it involve the consumer analysis and consumer value perception about a product. Moreover, it will ultimately conceive a product precisely according to the consumer needs and value perceptions. A product with consumer analysis and consideration of consumer needs and value perception can identify the best market price.