Concept explainers
To Discuss: The significance of pricing decisions to an individual firm and economy.
Introduction: Pricing decisions are the decisions that an organizations make when fixing costs for their items or services. Pricing is viewed as a component of an organization's marketing strategy since it impacts its association with various customers in the market.
Explanation of Solution
The significance of pricing decisions to an individual firm and economy are as follows:
Price implies one thing to the buyer and another thing to the merchant. To the buyer, it is the cost of any product or service or something. To the merchant, cost is income, is the essential cause of revenues. Price is what is provided in a trade to get a good or service.
Purchasers are keen on getting a "sensible price." "Sensible price" truly signifies "perceived sensible value" during any transaction. Revenue is the value charged to customers which is multiplied by the quantity of units sold. Managers as a rule endeavour to charge a price that will procure a reasonable profit to the business.
Want to see more full solutions like this?
- What are the various pricing techniques that a company may use to alter market patterns?arrow_forwardHow can a business' pricing decisions be affected by the government's actions?arrow_forwardDiscuss, How do businesses develop pricing strategies and tactics within their marketing plan to maximize profitability and competitiveness?arrow_forward
- What are the four categories of marketing activities, usually referred to as the marketing mix? In what important way does pricing differ from the other three categories?arrow_forwardCritically assess the effect of different Pricing Strategies on the Demand and Purchase of Consumer Goods on the local market.arrow_forwardOutline three types of pricing tacticsused by marketers.arrow_forward
- Describe the various pricing strategies that companies can employ in their marketing efforts.arrow_forwardDescribe how marketers use costs, demand, revenue, and the pricing environment to make pricing decisionsarrow_forwardWhat are the various pricing strategies available to the marketers who want to introduce a new products in a highly competitive market ?arrow_forward
- Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage LearningFoundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning