How does the market environment affect how you approach pricing? Provide examples.
Expert Answer
Pricing strategy is dependent on the competitors price, cost of materials used, competitive position in the market. Product uniqueness, customer’s requirement, value added to the customer and an organizations pricing and cost structure. We’ll take a few into consideration and elaborate through examples. Different retail store employ different kind of pricing strategy:
Walmart- Cost based pricing. It keeps low margin and tends to gain more customer to make up the bottom line of the organization.
Target – It uses competition-based based pricing. Generally it focusses on Walmart’s
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