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Your Text Details Four Basic Approaches or Methods Used by Organisations

question 40

Essay

Your text details four basic approaches or methods used by organisations to pricing of products in the market. These are cost- based, competition- based, value- based and relationship- based pricing. Describe each of these approaches and outline the strengths and weaknesses of each with examples to demonstrate your understanding.


Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of many types of naturally occurring data; synonymous with Gaussian distribution.

Normal Random Variable

A variable that is distributed in a way that fits the normal (Gaussian) distribution, characterized by its mean and standard deviation.

Mean

The average of a set of numerical values, calculated by adding them together and dividing by the number of values.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

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