I.

1. Demand

Demand is the quantity of a good or service the consumer is willing to purchase at specific prices
during a time period. It applies to the market’s desire to acquire a tangible or intangible item. At any time,
there is also only a definite number of potential consumers available.

2. Moon prices

The prospect theory explains that rebate provides the customers with additional positive utility.

3. Equilibrium

The equilibrium price is showing through the intersection of the demand and supply curve in an
equilibrium price graph. It is also called the market-clearing price. If the price is too high, customers may
avoid the good or service, resulting in excess supply. In contrast, if a price is too low, demand may
significantly outweigh the available supply. Economists use price theory to find the selling price that brings
supply and demand as close to the equilibrium as possible.

4. Supply

Supply theory is the relationship between the supply of a good and its price, This includes tangible
goods such as automobiles or intangible goods such as the ability to make an appointment with a skilled
service provider. In each instance, the available supply is finite in nature. The law of supply states that
sellers supply more goods at higher prices and supply fewer goods at lower prices. The supply function is
explained in the mentioned supply curve and schedule.

5. Free or Paid

The prospect theory explains that the negative utility is greater when a product or service is
paid/bought personally by a consumer. Refers to any strategy in which a brand targets potential
customers based on their interests, intent or previous interactions with the brand.

6. Better to pay in cash

It's easier to track exactly how you're spending your money. It's also an eye opener and keeps you
in reality as to how much cash is going out vs. coming in from week to week or month to month, This
states that consumers who want to have an overview of their expenditures tend to avoid paying with
credit cards.

II.

Value pricing

Value pricing is customer-focused pricing, meaning companies base their pricing on how much
the customer believes a product is worth, It involves external factors such as recession or increased
competition, which forces companies to provide value products and services to retain sales.

Economy pricing
 Method of pricing in which a low price is assigned to a product with decreased production costs.

Rate-based pricing

Rate based pricing strategy often set their prices based on the leader of the market, It involves
pricing a service based on hourly pricing model. Freelancers, consultants, and coaches most commonly
use this strategy for pricing their services.

Cost-based pricing

It involves building a profit margin directly into the price of a product or service. Referred to as
the pricing method that calculates the product’s price by firstly calculating the cost of the product in which
the desired profit is added, and the result is the final selling price