According to businessdictionary.com, demand-backward pricing is a pricing method in which the actual costs of the product are deducted from what the consumer is willing to pay. If a satisfactory profit is still reached, the method can be considered successful.Continue Reading
As the name suggests, demand-backward pricing involves working backward. Producers estimate what they believe the consumer would be willing to pay and then adjust accordingly until the proper figure is reached. This method is especially popular in women's and children's shopping items, such as beauty products, clothes, shoes and toys. Items that are commonly gifted also fit this criterion, as the buyer will typically decide beforehand how much he or she is willing to spend.
Once the final price is reached, if wholesalers are not successful in selling the product, producers typically adjust not the price but the quality of the components. Therefore, the cost of the product is generally resistant to the effects of the market.
The pharmaceutical industry also engages in this method of pricing. Because the per-unit cost of drugs is typically much lower than the consumer price, the pharmaceutical industry makes incredible profit. People who need these drugs often have little choice but to pay the price.Learn more about Marketing & Sales
A consumer benefit in consumer marketing is the positive value that a product or service provides to a consumer. A consumer benefit can either be inherent to the product or service, or it can be something intangible that the consumer might perceive about the product or service.Full Answer >
Deceptive pricing occurs when a retailer uses a pricing gimmick to make customers believe they are getting a bargain when they are not. Deceptive pricing can include a going-out-of-business sale or a bankruptcy sale when the company is not closing.Full Answer >
Selling, financing, promotion, pricing, product planning, distribution and risk management are seven functions of marketing, notes Hagerstown Community College. Another function of marketing is marketing information management.Full Answer >
Retail mix is a marketing plan that responds to a set of varying factors, such as location, pricing, personnel needs and offered services and goods. A retail mix plan targets strategies to attract customers and influence their purchasing ability. Retail mix also includes signage, placement of goods within the location and price discounts.Full Answer >