What is the external factor of pricing service: External factors include the environment in which the company is starting operations. They are outside the company. These factors are beyond the control of the company.
Marketing managers can influence these factors. But they cannot be controlled. Marketing efficiency is about influencing the external environment and adjusting the company to that external factor.
What is the external factor of pricing service?
Demand is represented by buyers for the purpose of tourism management. The demand area is represented by tourism and local people. Also, tourists can be destinations for domestic and international governments or motor.
In order to facilitate the identification of aggregate users, classification and identification of consumers are essential to understanding their behavior. Purpose of Desire and Demand Sailors’ freedom of pricing is influenced by a different factor.
The type of competition available in the market determines the price level of the company. Types of Competition Monopoly Pure competition There is elite and monopolistic competition.
Market conditions also affect the pricing policy. If the market is in a favorable position. So no mess company can set a higher price.
People’s age, family size, lifestyle also influenced purchasing ability and purchasing patterns.
The social system, social morality, religion, culture, etc. also determines the purchasing policy of the people. Which affects the pricing policy of the company.
The financial condition of people determines their purchasing power. If people are rich their financial condition is good. They like high-class service. If they don’t like daily essential product lessons. Social security insurance inclusion recession etc are the determining factors of people’s purchasing patterns.
Customer perception of value and value
It is the consumer who decides. Whether the product is priced right or not when a customer purchases product specialist services. Then they are evaluated. And some value is exchanged to get some value of value. And effective purchase-oriented value during service includes understanding this. That’s what the consumer price is. benefits to them
Evaluating the value of the customer associated with the service requires a constructive decision that is a result of the purpose of use. Our nervousness about the labor product of inspiration, their income level, and decision-making process of buying culture and geographical differences make the high value of tourism service demand.
2. Competitive prices and offers
Competitor’s price The cost of their production policy and their possible responses influence the pricing decision. There is a need to examine the price and value of similar service providers in the market.
3. Another external factor
Other factors that determine demand and cost. Can affect the price while setting the price. The organization should consider the factors in the external environment.
Economic factors such as boom to recession and interest rate affect the pricing decisions. They affect both the cost of production and purchasing power and consumer perception.
The product is planning to enter France on price and price government regulation policy, industry text, etc. affects prices. The association also decides the rewards for a certain group. Market arbiters are the most effective determinants of service value.
4. Product life cycle
As the product moves through its lifecycle. There is a change in the demand and competitive position of the product. That’s why marketers need to adjust pricing with another market mix. Service is generally a luxury concept.
So there are many determining factors. It has a high elasticity of demand. This means that the ratio of change between the change in price and the demand for a service is very high.
Or a small change is the service price. A big negative change in demand will create a rise in decision-making based on different approaches. There is a simple method to determine.
Set the minimum cost of cost cover and then the upper limit of efforts for the maximum level that can be positive. The final price will be somewhere between the two limits.