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Question 1

What are the three basic principles for contemporary pricing?

Answer 1

1. You must aim to price the product such that your entire target segment can afford it.
2. Your price should also be one that interested customers cannot refuse.
3. Your price must retain customers.

Question 2

What is a price corridor?

Answer 2

Is a tool that helps businesses find the right price for an irresistible offer.

Question 3

What are the two steps of price corridor?

Answer 3

1. Identify the price corridor for your new product
2. Choose a price level within your price corridor

Question 4

How is the step 1 achieved?

Answer 4

• Looking at all products that have the same resemblance as your new product
• Looking at products that have the same function as your new one, but may have a different form.
• Looking at all products that have the same objective as your new one, but may have a different form and function.

Question 5

How is the step 2 achieved?

Answer 5

Whether you choose an upper-level, mid-level, or lower-level, price depends on how much legal and resource protection you enjoy.