Explain the objectives of pricing policy and its aim
Explain the objectives of pricing policy and its aim.
Expert
Pricing decisions are generally considered a part of the general strategy for getting a broadly defined purpose. Before finding out the price itself, the management must decide the objectives.
When setting the price, the firm may intend at one or more of the given objectives.
1. Profit maximization: as the primary motive of business is to earn maximum profit, pricing all the time aim at maximization of profit by maximization of sales.
2. Market share: For increasing market share a firm may lower its price within relation to the product of competitors.
3. Target return in investment: The firm must fix the price for the product in a way that this will satisfy expected returns for the investment.
4. Prevent or Meet competition: with the aim of discourage competition a firm may adopt a low price policy.
5. Price stabilization: The other objective of pricing is to stabilize the product prices over a given period of time.
6. Resource mobilization: In this company may fix their prices in a way that adequate resources are made accessible for the firm’s developmental, expansion investment and so forth.
7. Speed up cash collection: Several firms try to set a price that will enable rapid cash recovery as they may be financially tight or may regard future is more uncertain to justify patient cash recovery.
8. Growth and Survival: A significant objective of pricing is survival and getting the expected rate of growth. Profit is less significant than survival.
9. Prestige and goodwill: Pricing also intends at maintaining the prestige and improving the goodwill of the firm.
10. Getting product: quality leadership, Several Companies intend at establishing product quality leader by premium price.
When the hourly wage rate for workers this purely competitive firm hires is approximately of $13, this will operate at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e. Q : States the term Production States the States the term Production?
States the term Production?
An investment in specific human capital arises while: (w) Chandra learns Japanese to be eligible for a potential job in Tokyo. (x) Chele has a face lift so she can increase her fees for high-fashion modeling. (y) Chelsea practices playing a harp and a
The supply curve of labor which confronts a large but purely competitive industry is usually: (1) horizontal. (2) positively sloped. (3) backward bending. (4) vertical. (5) negatively sloped. Can a
Investment in human capital is not essentially involved while: (w) people acquire and sharpen new productive skills. (x) a person attends college and learns engineering. (y) a person jogs to stay in shape. (z) the marginal productivity of labor increa
If all else regarding two occupations are relatively equal, then wages tend to be lower for jobs which: (1) require important education and training. (2) expose the worker to bad weather. (3) require extended periods away from home. (4) pose health and safety hazards
Concavity (or bowed-out shapes) in production possibilities frontiers is described least fine by: (i) The law of diminishing returns. (ii) Resources being unevenly suited for various forms of production. (iii) Rising opportunity costs. (iv) Non-neutra
I am uploading another project. Please provide cost and estimated delivery day. Thanks.
The value of marginal product of a variable resource is marginal physical product of it multiplied with: (w) the marginal revenue from the sale of its addition to output. (x) its cost. (y) the price of the product. (z) one.
Economic efficiency for all consumption and production choices would guarantee getting the social objectives of: (w) equality of income distribution. (x) employment and educational opportunities for all. (y) enhanced environmental quality. (z) None of
18,76,764
1959491 Asked
3,689
Active Tutors
1422449
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!