Price analysis: Difference between revisions
Content deleted Content added
Added in the key aspects of price analysis Tags: Reverted Visual edit |
Reverted good faith edits by Dimicity (talk): Unsourced, likely AI-generated text |
||
| Line 4: | Line 4: | ||
'''Price analysis''' is the study of how a price relates to other things such as product demand. Its specific meaning varies in contexts such as [[marketing]] and general [[business]]. |
'''Price analysis''' is the study of how a price relates to other things such as product demand. Its specific meaning varies in contexts such as [[marketing]] and general [[business]]. |
||
Key Aspects of Price Analysis |
|||
# '''Demand and Supply''': Understanding how the price of a product influences its demand and supply in the market. Higher prices may reduce demand but increase supply, while lower prices can have the opposite effect. |
|||
# '''Market Conditions''': Analyzing how economic conditions, market trends, and consumer behavior impact pricing strategies. This includes considering inflation, economic growth, and changes in consumer preferences. |
|||
# '''Competitor Pricing''': Examining the pricing strategies of competitors to determine how they affect a company's pricing decisions. This includes benchmarking against competitors and identifying opportunities for competitive pricing. |
|||
# '''Cost Analysis''': Evaluating the costs associated with producing and delivering a product to determine its pricing. This includes fixed and variable costs, as well as overhead expenses. |
|||
# '''Pricing Strategies''': Developing strategies to optimize pricing, such as penetration pricing, skimming pricing, and value-based pricing. These strategies are designed to achieve specific business objectives like market penetration or profit maximization. |
|||
# '''Consumer Perception''': Assessing how consumers perceive the price of a product relative to its value. This includes understanding price sensitivity and the psychological impact of pricing. |
|||
# '''Regulatory Environment''': Considering the impact of government regulations and policies on pricing. This includes compliance with price controls, tariffs, and taxation laws. |
|||
Importance of Price Analysis |
|||
* '''Informed Decision-Making''': Provides businesses with the necessary information to make informed pricing decisions. |
|||
* '''Competitive Advantage''': Helps businesses stay competitive by understanding market dynamics and adjusting prices accordingly. |
|||
* '''Profit Maximization''': Aids in setting prices that maximize profits while maintaining customer satisfaction. |
|||
* '''Market Positioning''': Supports effective market positioning by aligning pricing with brand strategy and market expectations. |
|||
Applications of Price Analysis |
|||
* '''Marketing''': Used to develop pricing strategies that align with marketing goals, such as attracting new customers or increasing market share. |
|||
* '''Business Planning''': Integral to business planning and financial forecasting, helping businesses plan for revenue and profit targets. |
|||
* '''Economic Analysis''': Utilized in economic analysis to understand broader market trends and their impact on pricing. |
|||
== Marketing == |
== Marketing == |
||
Latest revision as of 12:54, 2 December 2024
 | This article needs additional citations for verification. (November 2022) |
Price analysis is the study of how a price relates to other things such as product demand. Its specific meaning varies in contexts such as marketing and general business.
Marketing
[edit]In marketing, price analysis refers to the analysis of consumer response to theoretical prices assessed in survey research.
Business
[edit]In general business, price analysis is the process of evaluating a proposed price independent of cost and profit.[1][2] Price analysis began in 1939 when economist Andrew Court decided to analyze prices to better understand the environmental factors that influence this practice.[3] Price analysis is dependent on the characteristics of the marketing system in place within a certain country.[4] In developing countries researchers use it to help better understand data.[5]
Other
[edit]The term may refer to converting a price to a unit price, e.g., per unit of area.
References
[edit]- ^ Federal Acquisition Regulation 15.404-1(b) - Proposal Analysis Techniques, accessed 22 January 2019
- ^ FAA "16. Price Analysis". Archived from the original on 2011-09-30. Retrieved 2011-08-31.
- ^ Goodman, Allen C (1998-09-01). "Andrew Court and the Invention of Hedonic Price Analysis" (PDF). Journal of Urban Economics. 44 (2): 291–298. doi:10.1006/juec.1997.2071. ISSN 0094-1190. S2CID 154205079. Archived from the original (PDF) on 2020-02-12.
- ^ Jones, William O. "The structure of staple food marketing in Nigeria as revealed by price analysis." Food Research Institute Studies 8.1387-2016-116153 (1968): 95-123.
- ^ Trotter, B. W. (1992). Applying price analysis to marketing systems: Methods and examples from the Indonesian rice market. Vol. 3. Chatham, UK: Natural Resources Institute. ISBN 978-0-85954-315-6.
External links
[edit]
Media related to Price analysis at Wikimedia Commons
 | This marketing-related article is a stub. You can help Wikipedia by expanding it. |
 | This business-related article is a stub. You can help Wikipedia by expanding it. |