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Unit 4 topic test (Pricing Strategies (Cost plus pricing, Psychological…

- - - - One example is movie theatres: charging different rates for Child and Adult, this depends on the products elasticity
- - - - The product is sold to a wider customer base.
      - Some of the software adopted by businesses can be at a high quality allowing customisation increasing customer satisfaction
      - customer are aware of product specifications before purchasing the product
    - - traditional methods are supplemented for online advertising
      - multimedia (use of social media) is very effective and is low cost.
      - online surveys allow customer feedback and improvements for product and overall customer satisfaction,
    - - Customers can compare prices before purchasing a good or service (trivago)
      - Consumers buy directly from the manufacturer instead of a distribution method, meaning the business saves money
    - - Online shopping is accessable to most of the population
      - It does not require distribution which leads to cost reduction
  - - - Businesses can sell to a larger customer base.
      - It is more cost effective - in regards to marketing a product compared to the traditional methods
      - Firms like Facebook will be benefiting when other businesses want to use advertising space.
      - Reduces wastage and avoid the landfill tax found in some countries, this could be achieved by publishing online manuals.
    - - Internet security, when consumers have to pay online it may be a security risk. Which could decrease sales
      - Business invest a large sum of money on internet security hardware and software which could not be cost effective
      - firms are vulnerable to competitors as they can access there product information and trade to compete within the market
      - For business like start ups, running a website could be costly as it require mantainance and can be negative on the total cost
    - - Easily accessable, it can be bought within the comfort of their home without going to a physical store
      - Increased choices and allows consumers price and feature comparision
      - good online customer service may increase customer satisfaction
    - - Consumers can not physically try or feel the product before they purchase the product
      - Online pop ups and spam may annoy some consumers
      - Consumers in less devoleped countries would not have access due to bad connectivity with the internet
      - Credit card information is at risk as it can be stolen by online hackers
  - - - When the business trades to another business like a farmer selling produce to supermarkets
    - - when a business sells to a consumer (amazon or apple)
    - - Where transactions are taken place between each other like ebay or carousel.
- - - - Add year 1,2,3,4
        
        Step 2.
        
        Add year 2,3,4,5
        
        Add the two values and divide/by eight
  - - - Step 2. Divide the value by 3
  - - - and divide the value by 4
      - if the example were 5 divide the value by 5
- - - - Advantage
        
        It can be accurate and trust worthy
      - Disadvantage
        
        It may not be time and cost effective
  - - - Advantage
        
        It is cost effective and easily accessed
      - Disadvantage
        
        It can may not be [accurate]