What Are Three Crucial Objectives Of Price Policy

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Q2: Mention three crucial objectives of price policy?
Prices are flexible. A company can lower them in order to increase sales enough to keep the business going. The company uses a survival-based price objective when it's willing to accept short-term losses for the sake of long-term viability. In these days of severe competition and business uncertainties, the firm must set a price which would safeguard the welfare of the firm. A firm is always in its survival stage. For the sake of its continued existence, it must tolerate all kinds of obstacles and challenges from the rivals.
Price has both direct and indirect effects on profit. The direct effect relates to whether the price covers the cost of producing the product. Price affects profit indirectly by influencing how many units sell. The number of products sold also influences profit through economies of scale -- the relative benefit of selling more units. The primary profit-based objective of pricing is to maximize price for long-term profitability. The firms are interested in keeping their prices stable within certain period of time irrespective of changes in demand and costs, so that
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This strategy either requires you to be open to haggling, such as a used-car dealer is, or to profile your customers and offer personalized prices based on past performance. Online merchants who use a customer's purchase history and data on comparison shopping behavior to determine prices are especially vulnerable to bad publicity and consumer alienation. In an ideal business world, companies would be able to eliminate all consumer surplus through first degree price discrimination. This type of pricing strategy takes place when businesses can accurately determine what each customer is willing to pay for a specific product or service and selling that good or service for that exact
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