Answer to Question #137346 in Economics of Enterprise for Charmaine

Question

“Pricing is not simply an issue of calculating a formula, but rather setting a price that is
perceived by customers to be of value relative to what they get for the price” as stated by
Nieuwenhuizen (2016). One of the ways of setting a price is by using a customer‐orientated
process (Strydom,2004).

Outline any five elements of customer‐orientated pricing and provide an explanation of
each.
(5)

Answer 1

Five elements of customer -orientated pricing.

a) customer attitude - are consumer opinions and feelings about the product or company.

b) Learning - is the process through which a consumer, based on experiences, learns how to buy and use a product or service.

c) Motivation - is the process by which consumers are driven or moved to satisfy a particular need.

d) Consumer personality - Is a set of traits and characteristics of the person and varies from one person to another.

e) Lifestyle - It means the way a person lives and is usually expressed by the things he has around him. It depends on the consumer's interests, his views, the activities he carries out, the way he interacts with others.