Assignment-2

Think of the various pricing methods. As a consumer, which method do you personally prefer to
deal with? Why? Evaluate the remaining methods and explain why those are not preferred.

Discussion:
Price
also communicates to the market the company’s intended value positioning of its product or
brand

If a business sets a price that is too high or too low, it will limit the growth of the firm. And it
may trigger severe problems for sales and cash flow of the business. Therefore it it imperative
for a

Value Pricing:

Implies a method in which an organization tries to win loyal customers by charging low prices
for their high- quality products. The organization aims to become a low cost producer without
sacrificing the quality. It can deliver high- quality products at low prices by improving its
research and development process. Value pricing is also called value-optimized pricing.

Many companies fail to communicate their perceived quality to consumers like me which results
in incorrect pricing of products