What Are the Problems Associated with the Use of a Cost-Based

question 98

Essay

What are the problems associated with the use of a cost-based pricing strategy? What contribution does cost make to the setting of prices?

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Definitions:

Market Orientation

A business approach where the needs and wants of customers guide all marketing decisions and strategies.

Customer Value

Refers to the perceived worth of a product or service in the eyes of the customer, balancing its benefits against its cost.

Product Orientation

A business philosophy that focuses on the quality and attributes of the product itself rather than customer needs or desires.

Marketing Concept

A business philosophy that emphasizes identifying and meeting the needs and wants of customers as the key to achieving organizational goals.