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Advertising Ch 14

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the five cs of pricing include all of the following except

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Performance

When acquiring data know-how and associated providers, contemplate using modular contracting to reduce program threat (see 39.103). Performance-based acquisition strategies have to be used to the utmost extent practicable, if the contract or order is for services (see 37.102 and subpart 37.6). In general, the contracting officer doesn’t synopsize orders beneath indefinite-supply contracts; besides see sixteen.505 and , and sixteen.505. The mixture of sources a contractor should have to perform anticipated task or supply order necessities. The contract shall state, if possible, the utmost restrict of the contractor’s obligation to ship and the Government’s obligation to order. The contract can also specify maximum or minimal portions that the Government could order under each particular person order and the maximum that it may order during a specified period of time.

Pricing designed to have a optimistic psychological impact. For instance, there are often benefits to promoting a product at $3.95 or $three.99, somewhat than $4.00. If the value of a product is $100 and the company costs it at $99, then it’s utilizing the psychological strategy of just-below pricing. In most consumers’ minds, $ninety nine gives the look of being considerably lower than $a hundred. A minor distinction in pricing could make a big difference in gross sales. The company that succeeds to find applicable psychological value factors can enhance sales and maximize revenue.