Your question: What are the factors influencing the pricing of goods or services in Nigeria?

What are the factors influencing pricing of goods and services in Nigeria?

Equally he explained that there are other variables that influences pricing decisions according to him, this includes: Manufacturer’s pricing objective, economic situation, level of competition, and availability of close substitute.

What are the factors influencing pricing?

9 Factors Influencing Pricing Decisions of a Company

  • Price-quality relationship: …
  • Product line pricing: …
  • Explicability: …
  • Competition: …
  • Negotiating margins: …
  • Effect on distributors and retailers: …
  • Political factors: …
  • Earning very high profits:

What are the seven factors which influence the pricing of products and services?

7 Factors That Will Influence Your Product Pricing Strategy

  • The level Of Competition.
  • Perceived value of your product.
  • Product development cost.
  • Economic trend.
  • Level of market demand.
  • Demographics.
  • Class of targeted customers.

Which five factors influence the pricing of a product service?

Five factors to consider when pricing products or services

  • Costs. First and foremost you need to be financially informed. …
  • Customers. Know what your customers want from your products and services. …
  • Positioning. Once you understand your customer, you need to look at your positioning. …
  • Competitors. …
  • Profit.
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What are the three main factors that influence pricing?

The three major influences on pricing decisions are customers, competitors, and costs. The customers influence pricing through their demand for product and services. Competitors, on the other hand, affect price by providing or not providing alternative product.

What are the types of pricing?

Types of Pricing Strategies

  • Demand Pricing. Demand pricing is also called demand-based pricing, or customer-based pricing. …
  • Competitive Pricing. Also called the strategic pricing. …
  • Cost-Plus Pricing. …
  • Penetration Pricing. …
  • Price Skimming. …
  • Economy Pricing. …
  • Psychological Pricing. …
  • Discount Pricing.

What are the four basic pricing strategies?

Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale.

What are the general pricing approaches?

These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of the product.

What are the 4 main factors that influence a business pricing strategy?

There are a number of factors to take into account when reaching a pricing decision:

  • Customers. Price affects sales. …
  • Competitors. A business takes into account the price charged by rival organisations, particularly in competitive markets. …
  • Costs.

What is the importance of pricing?

Pricing is important since it defines the value that makes it worth it for you to make and for your customers to use your product. It is the tangible price point that lets customers know whether it is worth their time and investment.

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What factors make pricing difficult for services?

Those factors include the offering’s costs, the demand, the customers whose needs it is designed to meet, the external environment—such as the competition, the economy, and government regulations—and other aspects of the marketing mix, such as the nature of the offering, the current stage of its product life cycle, and …

What are the factors that you may want to consider when buying things or availing of services?

The consumers consider various things like the characteristics of the product, price charged, availability of the product at the required location and much more. The personal factors include age, occupation, lifestyle, social and economic status and the gender of the consumer.

What are the two types of value based pricing?

There are two types of value-based pricing:

  • Good-value pricing, which is offering the right combination of quality and service at a reasonable price and.
  • Value-added pricing which is attaching value-added features and functions to differentiate an offer, thus supporting higher rates.
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