Cost-oriented pricing strategies are developed with a focus on understanding cost basis and setting prices at a certain … The first one was a Delphi study among experts on most suitable monetary incentives to stimulate healthy eating (Reference Waterlander, Steenhuis and de Vet 24). Price is the amount customers are charged for items. However, some external factors may be difficult to identify, particularly of the pace of change is very slow or is hidden from view. In theory, this occurs at a price where MR=MC. According to the statistics, small variations in prices can raise or lower profitability by as much as 20-25%. Discuss the social and financial implications of generic drug pricing decisions for various groups of stakeholders. Extent of Competition in the Market 4. Value pricing. A firm also has to look at a myriad of other factors before setting its prices. Having a pricing objective isn’t enough. Factors Influencing Pricing Decisions: Among the many factors influencing the pricing decisions, the three major influences are customers, competitors and costs. Pricing strategies in generic medicines Posted 01/10/2010 Eighty two per cent of countries impose pricing regulation while 18% opt for free market competition to control prices. Customers: Managers examine pricing problems through the eyes of their customers. Evaluate the impact competitors and additional economic factors have on the results of the generic drug pricing strategies. This paper examines factors that affect pricing decision for export markets, and sheds light on international pricing strategies in a global competitive market. Factors Affecting Pricing Decisions (Top 5 Factors): Price is the only element of marketing mix that helps in generating income. The Pricing Strategy Matrix shows how different levels of price and quality combine to form four commonly used pricing strategies: Figure 1: The Pricing Strategy Matrix The Pricing Strategy Matrix discussed in this article is derived from a paper by Joel Dean titled " Pricing Policies for New Products ." Having a pricing objective isn’t enough. A. 2. Types of pricing strategies. In 750-1,000 words, analyze the pricing strategies and discuss the following: 1. Government and Legal Regulations 5. Profit- & Cost-Oriented Pricing Strategies. Pricing strategies Remember there is a big difference between costs and price.Costs are the expenses of a firm. Pricing strategies vary considerably across industries, countries and customers. A firm also has to look at a myriad of other factors before setting its prices. The value is determined through market testing and a price is set based on this value. The dynamic software engine extends the basic formula outlined above adding a range of other pricing and non-pricing factors to be considered. However, revenue for small businesses can be scarce. Internal Factors: 1. Cost: While fixing the prices of a product, the firm should consider the cost involved in producing the product. Economic conditions directly impact supply and demand - factors at the heart of all pricing decisions, regardless of industry. The marketer should know the factors that influence the pricing decisions before setting the price of … A look at different pricing strategies a firm may use to try and increase profitability, market share and gain greater brand loyalty. The additional products leads to a surplus, the surplus causes prices to fall once more, and the lower prices lead to an increase in demand, starting the cycle over again. 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