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Pricing Decisions - Essay Example
Author : champlinmaxime
Finance & Accounting
Pages 4 (1004 words)
PRICING DECISIONS Name: Tutor: Course: Date: Abstract In the context of marketing, pricing decisions are critical conceptual tools used by an organization in responding to its marketing objectives. In actual business environment, setting price for products and services proves as one of the most agonizing undertaking for marketing personnel…
All the articles provide a framework through which managers and stakeholders within the marketing environment can understand pricing dynamics. In order to enhance objectivity of results obtained, these articles employ the use of scientific research processes in acquiring information. Therefore, findings at the end of each article reflects experimental results on pricing policies, efficiency of pricing models and the relationship between pricing decisions and productivity. Introduction In actual marketing context, product and service pricing plays a significant role in influencing attitude of current and potential consumers. In a competitive environment, consumers may avoid purchasing goods from a given manufacturer because of higher prices compared to other producers in the industry. On the contrary, Kunnumkal and Topaloglu (2010) say that setting product and service prices depend on the production cost as well as profitability objectives of an organization. In this case, any producer has to reach a compromise between retaining consumers and pursuing its goals of profit maximization. According to Hoseason (2003), pricing models and policies contained within these articles proposes empirical mechanisms through which producers can achieve such an essential compromise. ...