Companies pricing decision depend o

Companies pricing decision depend on one or more of three basic factors : production and distribution costs ,the level of demand ,and teh prices (or probable prices ) of current and potential competitors .Companies also consider their overall
Objectives and their consequent profit or sales targets ,such as seeking maximum revenue ,or maximum market share ,etc. Price strategy must also consider market positioning ; quality products generally require “ prestige pricing ” and will probadly not sell if their price is thought to be tooo low
Obviously,firms with excess production capacity ,a large inventory ,or a falling market share ,tend to cut prices . Firms experiencing cost inflation ,or a urgent need to cash ,tend to raise prices.A company faced with demand that exceeds its possibility to supply is also likely to raise its prices .
When sales respond directly to price variations ,demand is said to be elastic .If sales remain stable after a change in price ,demand is inelastic .Although it is and elementary law of economics that the lower the price ,the greater the sales ,there are numberous exceptions .For example ,price cuts can have unpredictable psychological effects : buyers may believe that the product is faulty or of lower quality ,or will soon be replaced ,or that the firms is going bankrupt,etc.Similarly ,price rises convince some customers that product must be of high quality ,or will soon become very hard to get hold of,and so on.
A psychological effect that many retailers count on is that a potential customer seeing a price of $400 price rather than the $500.This technique is known as “odd pricing “
Obviously most customers consider elements other than price when buying something : the “ total cost “ of a product can include operating and servicing costs and so on .Since price is only one elements : improving its product ,service ,communications ,etc.Reciprocal price cuts may only lead to a price war ,good for customers but disastrous for producers who merely end up losing money.

Kết quả (Việt) 1:

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Kết quả (Việt) 2:

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