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Describe value-based pricing

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1. Describe value-based pricing and explain how this approach may be applied when setting prices for a product.

2. What is the difference between fixed and variable costs. Give an example of each for a company that makes mobile phones. Why is it useful to distinguish between them in making pricing decisions?

3. How do the pricing strategies followed by large firms and small firms differ? Discuss your answer in relation to the supermarkets.

Reference no: EM133189260

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