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Demand-Oriented Pricing

13 May, 2016 - 13:23

Demand-oriented pricing focuses on the nature of the demand curve for the product or service being priced. The nature of the demand curve is influenced largely by the structure of the industry in which a firm competes. That is, if a firm operates in an industry that is extremely competitive, price may be used to some strategic advantage in acquiring and maintain market share. On the other hand, if the firm operates in an environment with a few dominant players, the range in which price can vary may be minimal.