Pricing. Discuss traditional approaches to customer driven pricing


Customers-driven pricing is important. Price is a major factor in customer purchasing decisions. Traditional companies have adopted customer-driven pricing, which means that the price of a product was determined by the perceptions of market value. Various pricing strategies such as market-orientated pricing, competition-based pricing, and cost-plus pricing have been used to identify the appropriate price to maximize profits (Kumar & Narayan, 2021). Price setting is a complex process that takes into consideration many factors, including size, price structure, demand, quality and cost. Pricing strategies should ensure prices are affordable to customers in order to meet customer demands and increase market share. Cont…

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