The method requires managers or analysts to study competitors' prices in detail. After that, they can either set an average market price or focus on the niche leader.
This pricing method is based on the preferences and desires of target consumers. Companies typically research the market, determine demand, and determine the market “equilibrium” price. In this case, the largest amount of products will be sold at the best price.
The company's analysts, marketers and economists focus on theoretical or practical research. For example:
conduct surveys;
launch test sales, change prices several times and watch the reaction of buyers;
examine the relationship between total supply and demand in a specific period of time.
3. Focus on psychological factors and price perception
Any person can perceive the cost of services and goods in their own way. For chile phone number list some, the presented set of qualities and features of the goods will be acceptable for such a price, for others - not.
That is why, if you use psychological pricing, you can divide the audience into segments and set a price for each of them. In this case, business expenses recede into the background.
Parametric
Parametric methods are often used when a business needs to set a price for products, and there is little data on the external and internal environment. Then empirical or already established indicators are used.