Using this method, should be clearly defined

By applying this method does not take into account three important factors: the level of demand for credit services, customer sensitivity to the level of fixed prices, the prices of competitors. Excluding these factors can not accurately determine the price of credit services. In case of Bank of higher prices for the same as the provision of credit services to a threat of loss of share of existing customers. Along with the drawbacks, this method has several advantages, in particular, it is easy to use and the possibility of comparing prices with competitors. The bank has an opportunity to pay less attention fluctuations in supply and demand for credit services. Pricing based on tangible value of the product is not based on accounting costs by providing bank services, and the perception of service customers. The quality, usefulness and relevance of credit services to the customer creates a relationship to it, hence the reasonable price level for credit services. Applying this method of pricing, banks often proceed from the assumption that the value of the product to the customer need not just to state, but also emphasize the consumer and create the appropriate view that without the services of such quality that provides a particular bank, they can not do without. In addition, it is necessary to compare the prices, quality and reliability of competitor's products. Using this method requires banks to structure their detailed study of costs, which allows us to estimate the relative quality and price on the same product. Category: Management Operations Commercial Bank