Answered: Describe how to establish the…

Describe how to establish the “approximate price level” using demandoriented, cost-oriented, profit-oriented, and competition-oriented approaches

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter8: Evolutionary Solver: An Alternative Optimization Procedure

Section8.4: Nonlinear Pricing Models

Problem 3P

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Concept explainers

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”

Question

Describe how to
establish the
“approximate price
level” using demandoriented, cost-oriented,
profit-oriented, and
competition-oriented
approaches

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