No topic need Essay Example | Topics and Well Written Essays - 250 words - 2

No topic need - Essay ExampleCost based set is a pricing form determined by the manufacturing and production cost of a commodity. The form of pricing is advantageous since an government activity is assured of not gaining a loss of its products. However, the strategy may prefer a tall price than the preference of the customer (Nagle & Holden 35).In Ford Company, cost based form of pricing is favored due to the diverse range of products it produces. The organization sets its minimum and maximum price range depending on the particulars of the product. The pricing strategy has ensured the organization record its required profits on products. In addition, in regards to the experience of the organization in the securities industry, consumers feel comfortable with the prices set of the products (Nagle & Holden 56).At the start of the production in the organization, Ford employ penetration pricing. Penetration is where an organization quotes relatively low prices. The prices are then r aised when the organization gains market share. The growth of the pricing range will be determined by factors influence the market (Nagle & Holden