Market Pricing

2013 ◽  
pp. 118-141
Keyword(s):  
Market Competition ◽  
Rate Of Return ◽  
Price Strategy ◽  
Pricing Strategies ◽  
Price Effect ◽  
Market Pricing ◽  
Price Wars ◽  
Consumer Segment ◽  
Competitive Prices ◽  
Strategic Perspective

While addressing the price games, this chapter argues that in the price sensitive consumer segment firms drive their profit by applying psychological pricing and zero effects on competitive prices. The zero price effect in reference to the price of a competitor is a phenomenon whereby the demand for a product or service is significantly greater at a price congruent to that of a competitor. The author also addresses an interesting and significant factor affecting the pricing strategies of the firms concerning reactive pricing and price wars. The discussion on the above perspectives in the chapter reveal that historically firms struggling in market competition have taken price for granted, assuming that their main objectives were to cover costs and achieve a target rate of return. Now, companies are adopting more sophisticated approaches. A strategic perspective on pricing includes price objectives, price strategy, price structure, price levels, and price promotions.

scholarly journals Pricing decisions, competition and liquidity constraints

2020 ◽  
Vol 47 (2) ◽  
pp. 366-385
Author(s):  
Chrysovalantis Amountzias
Keyword(s):  
Design Methodology ◽  
Liquidity Constraints ◽  
Perfect Competition ◽  
Selling Price ◽  
Pricing Strategies ◽  
Content Type ◽  
Pricing Decisions ◽  
Price Wars ◽  
The Uk ◽  
Retail Food

PurposeThis study investigates the pricing decisions of the UK wholesale and retail food, beverages and tobacco sector over 2007–2016 using 19 four-digit level NACE Rev.2 classification industries.Design/methodology/approachThe Hall (1988) and Roeger (1995) model is employed to estimate the price-cost margin for the aggregate sector and each constituent industry.FindingsThe results suggest the presence of weak imperfect competitive conduct as the markup value is close to perfect competition. Moreover, it is found that industries with higher market share and liquidity reserves tend to charge a lower markup, validating the presence of price wars and competitive incentives in the sector.Originality/valueThis paper contributes to the literature of pricing decisions and how access to available liquidity may affect the selling price of products. The pricing strategies also depend on the market structure as firms operating in more competitive sectors may start price wars more often than their counterparts in more concentrated sectors. Therefore, this study adds value to the investigation of pricing decisions under liquidity constraints across the UK wholesale and retail food, beverages and tobacco firms.

The Curtiss-Wright Corporation and Cold War–Era Defense Procurement: A Challenge to Military-Industrial Complex Theory

2000 ◽  
Vol 2 (1) ◽  
pp. 35-75 ◽  
Author(s):  
Eugene Gholz
Keyword(s):  
Cold War ◽  
Free Market ◽  
Market Competition ◽  
The United States ◽  
Industrial Complex ◽  
Defense Procurement ◽  
Military Industrial Complex ◽  
Defense Contractor ◽  
Strategic Perspective

The extraordinary year-to-year continuity in the list of top Cold War aerospace suppliers has led many analysts to adopt theories of a military-industrial complex (MIC). The collapse of the Curtiss-Wright Corporation, once the second-largest manufacturer in the United States and a leading defense contractor, belies their approach. This article recounts the histories of Curtiss-Wright's three independent divisions and uses these to test the MIC theory against three other explanations of the pattern of Cold War defense procurement: the technological imperative, the bureaucratic-strategic perspective, and free-market competition. The bureaucratic-strategic theory is most consistent with the case-study evidence.

scholarly journals Pricing Strategies In High-Inflation Markets: Implications For The Multinational Corporation

2011 ◽  
Vol 9 (1) ◽  
pp. 44
Author(s):  
Alphonso O. Ogbuehi
Keyword(s):  
Multinational Corporation ◽  
Multinational Firms ◽  
Pricing Strategies ◽  
Market Demand ◽  
Internal Factors ◽  
Government Regulations ◽  
Market Pricing ◽  
Easy Task ◽  
Pricing Decision ◽  
High Inflation

The pricing decision of multinational firms directly affects their ability to competitively remain in a high-inflation market. Pricing, never an easy task, involves many factors such as competition, market demand, government regulations, and internal factors. However, when the firm must set price within a high-inflation market, these factors become compounded. A framework for formulating pricing strategies in high-inflation markets is proposed.

scholarly journals The Effect of Service Quality and Price Strategy on Customer Satisfaction through Purchasing Decisions as an Intervening variable In 212 Mart Gowa, South Sulawesi Province

2020 ◽  
Vol 2 (2) ◽  
pp. 11-22
Author(s):  
Afra Nurul ◽  
Otto Randa Payangan ◽  
Muhammad Ismail
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Coefficient Of Determination ◽  
Price Strategy ◽  
Pricing Strategies ◽  
Purchasing Decisions ◽  
Validity And Reliability ◽  
Business World ◽  
Retail Business ◽  
Positive Effect

Along with the development of increasingly modern times, this has caused a lot of competition in the business world, including retail business. Every businessman needs to pay attention to the factors that influence customer purchasing decisions. The research objective is to determine the effect of service quality and pricing strategies on purchasing decisions, determine the effect of service quality and pricing strategies on customer satisfaction, determine the effect of purchasing decisions on customer satisfaction, to determine the effect of service quality and price strategies on customer satisfaction through purchasing decisions at 212 Mart Gowa The population in this study were all consumers who shop at 212 Mart Gowa determined as many as 100 respondents. Data collection techniques through observation, interviews, and questionnaires. While the data analysis technique uses validity and reliability, path analysis, hypothesis testing, and coefficient of determination. The results of the study found that service quality has a positive but not significant effect on purchasing decisions, price strategy has a positive effect but is not significant on purchasing decisions, service quality has a positive and significant effect on customer satisfaction, price strategy has a positive and significant effect on customer satisfaction, purchasing decisions have a positive effect and significant on customer satisfaction, service quality has a positive but not significant effect on customer satisfaction through purchasing decisions, and the price strategy has a positive but not significant effect on customer satisfaction through purchasing decisions on 212 Mart Gowa.

scholarly journals STRATEGI PENETAPAN HARGA DALAM MENINGKATKAN PROFITABILITAS USAHA KONVEKSI KEMBANG MAS

2021 ◽  
pp. 905
Author(s):  
Rodhiah Rodhiah ◽  
Leo Colin ◽  
Fadillah Akbar ◽  
Raden Mas
Keyword(s):  
Pricing Strategy ◽  
Price Strategy ◽  
Selling Price ◽  
Pricing Strategies ◽  
Direct Impact ◽  
Important Decision ◽  
Marketing Activities ◽  
The Right ◽  
Price Strategies

Pricing strategy is the most important decision in marketing activities. Because it will have a direct impact on the acceptance of a company's opinion, the profit obtained is one source because of the price offered to consumers. The partner who is the place of activity is a business engaged in the embroidery convection which is located in West Jakarta. PKM activities are carried out by looking at the problems of SMEs, especially in terms of price strategies offered to consumers, plus there are quite a lot of border businesses around partners, so partners need to have the right price strategy in dealing with competitors and increasing profits. The method offered to training/socialization partners is in the form of a zoom meeting, which includes an introduction to pricing strategies, pricing goals, and steps to determine the selling price that partners should use. The results of the activities carried out run well, partners gain knowledge about pricing strategies, to increase their profits. Strategi harga merupakan keputusan yang paling penting dalam kegiatan pemasaran karena akan berdampak secara langsung pada penerimaan pendapat suatu perusahan. Selanjutnya keuntungan yang diperoleh dapat menjadi salah satu sumber karena adanya harga yang ditawarkan ke konsumen. Mitra yang menjadi tempat kegiatan merupakan usaha yang bergerak di bidang konveksi bordir yang berlokasi di Jakarta Barat. Kegiatan PKM dilakukan dengan melihat permasalahan UKM terutama dalam hal strategi harga yang ditawarkan ke konsumen, ditambah lagi usaha bordir di sekitar mitra cukup banyak, sehingga mitra perlu memiliki strategi harga yang tepat dalam menghadapi pesaing dan meningkatkan keuntungan. Metode yang ditawarkan ke mitra pelatihan/sosialisasi secara online dalam bentuk zoom meeting. yang meliputi pengenalan tentang strategi harga, sasaran penetapan harga, dan langkah melakukan penetapan harga jual yang sebaiknya digunakan mitra. Hasil kegiatan yang dilakukan berjalan dengan lancar, mitra mendapatkan bekal pengetahuan tentang strategi harga, dalam upaya meningkatkan keuntungan . 

New B2B product pricing

2020 ◽  
Vol 35 (11) ◽  
pp. 1861-1869
Author(s):  
Kostis Indounas
Keyword(s):  
Mail Survey ◽  
Pricing Strategies ◽  
Related Factors ◽  
Content Type ◽  
Product Pricing ◽  
New Business ◽  
Competitive Prices ◽  
Business To Business ◽  
Practical Implications ◽  
Initial Price

Purpose The purpose of this paper is to investigate the characteristics that lead to the adoption of the three new business-to-business (B2B) product pricing strategies, namely, skimming pricing (i.e. a high initial price), penetration pricing (i.e. a low initial price) and pricing similar to competitive prices. Design/methodology/approach To achieve the study’s research objectives, data were collected through a mail survey from 116 B2B firms, operating in four different sectors. Findings The adoption of skimming pricing and penetration pricing is triggered by company-related factors that are associated with the company’s corporate and marketing strategy and the product characteristics, while the adoption of pricing similar to competitive prices is influenced by market-related factors that are associated with customers’ and competitors’ characteristics. Practical implications The above findings indicate that the managers responsible for setting prices for new B2B products should follow a “situation-specific approach” and be guided by the unique characteristics of their internal and external environment. Originality/value Its contribution lies on the fact that, building upon quests within the existing literature, it constitutes one of the first attempts to examine empirically the aforementioned issue.

The Value of Personalized Pricing

2021 ◽  
Author(s):  
Adam N. Elmachtoub ◽  
Vishal Gupta ◽  
Michael L. Hamilton
Keyword(s):  
Optimization Problems ◽  
Linear Optimization ◽  
Upper Bounds ◽  
Price Strategy ◽  
Pricing Strategies ◽  
Lower And Upper Bounds ◽  
Additional Information ◽  
Trade Offs ◽  
Linear Optimization Problems ◽  
Feature Based

Increased availability of high-quality customer information has fueled interest in personalized pricing strategies, that is, strategies that predict an individual customer’s valuation for a product and then offer a price tailored to that customer. Although the appeal of personalized pricing is clear, it may also incur large costs in the forms of market research, investment in information technology and analytics expertise, and branding risks. In light of these trade-offs, our work studies the value of personalized pricing strategies over a simple single-price strategy. We first provide closed-form lower and upper bounds on the ratio between the profits of an idealized personalized pricing strategy (first-degree price discrimination) and a single-price strategy. Our bounds depend on simple statistics of the valuation distribution and shed light on the types of markets for which personalized pricing has little or significant potential value. Second, we consider a feature-based pricing model where customer valuations can be estimated from observed features. We show how to transform our aforementioned bounds into lower and upper bounds on the value of feature-based pricing over single pricing depending on the degree to which the features are informative for the valuation. Finally, we demonstrate how to obtain sharper bounds by incorporating additional information about the valuation distribution (moments or shape constraints) by solving tractable linear optimization problems. This paper was accepted by David Simchi-Levi, revenue management and market analytics.

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