BDMAssign 2 - The challenge to set price strategy is to set...

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The challenge to set price strategy is to set realistic and fair price which may not only satisfy the customer but also help the business gain market share and make profit. For pure competition , different companies sell identical products that consumers perceive as substitutable. Each product supplies a very small proportion of total industry output. No company has influence/control over the price charged. Price strategies are price takers. Price is set at the marginal cost of the product. For example, wheat, bread, milk and other basic necessities we purchase every day in retail stores. Most retailers follow cost-based pricing methods, a fixed mark-on pricing strategy by starting with the cost. Others follow market accepted priced strategy, which focuses on customers. This is to ensure sufficient profits to sustain the business. Monopolistic competition is a market structure in which there are many firms selling differentiated products. Differentiation in products creates differences in customer valuation,
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BDMAssign 2 - The challenge to set price strategy is to set...

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