Sample interview questions: What pricing models or frameworks have you worked with in the past?
Sample answer:
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Cost-Plus Pricing: This is a simple pricing model where a company adds a markup to the cost of producing a product or service to determine the selling price. This is a straightforward method, but it does not take into account factors such as demand, competition, or market conditions.
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Value-Based Pricing: This pricing model is based on the perceived value of a product or service to the customer. The company sets a price that it believes reflects the benefits and features of the offering, rather than simply covering the cost of production.
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Penetration Pricing: This is a pricing strategy where a company sets a low price initially to penetrate the market and gain market share. Once the product or service is established, the company may then raise the price to a more profitable level.
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Price Skimming: This pricing strategy involves setting a high… Read full answer