Pricing Decisions Essay Example | Topics and Well Written Essays - 1000 words - 1

Pricing Decisions - Essay ExampleAll the articles provide a exemplar through which managers and stakeholders inside the marketing environment can understand price dynamics. In order to lift objectivity of results obtained, these articles employ the use of scientific research processes in acquiring information. Therefore, findings at the end of distributively article reflects experimental results on pricing policies, efficiency of pricing models and the relationship between pricing decisions and intersection pointivity. admittance In actual marketing context, product and good 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 comp ard to other producers in the industry. On the contrary, Kunnumkal and Topaloglu (2010) say that setting product and service prices depend on the production embody as well as profitability obje ctives of an organization. In this case, some(prenominal) 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. One article holds the opinion that pricing decisions should be in line with observed or expected customer behavior. In this case, all decisions regarding product price should take into consideration implications resulting from implementing adopted policies. Contrarily, other articles insist on the role of production cost in determining market price of products and services. Such a model seeks to establish an economic residue between production efficiency and pricing policies. Importance of the Study With respect to significance of information contained within the articles, one should acknowledge the fact that empirical pricing mode ls are instrumental in responding to real gentleman marketing problems. In practical context, the economic forces of demand and supply may not prove realistic and responsive in explaining price elasticity. According to Mandy (2009), prices may be affected by other variables homogeneous distribution mechanisms, marketing channels and retail strategies. In this case, manufacturers need to appreciate resourcefulness of experimental approaches in making pricing decisions. Low price on products and services may induce customers propensity to occupy buy decisions. However, setting such low prices should be in synchronization with other determinant factors kindred cost of manufacturing and expected revenue of an organization. According to Leo, Chris and Verma (2012), certain market segments, especially those involved in existent products are known to being more price sensitive compared to service delivery markets. In such cases, pricing decisions should be a function of price sensiti vity variables and expected revenue. This explains why pricing policies are formulated after thorough consideration to aspects of marginal costs and profits. Article 1 - Retailer projectile Pricing and Ordering Decisions Category Management versus Brand-by-Brand Approaches, Kopalle et al, 2010. According to Kopalle, Hall and Krishna (2010), the aim of this article is to determine the effectuate of category management in influencing ordering decisions and sustaining profitability at a given pricing levels. It seeks to bump an empirical