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.
A firm is probably to reduce the number of workers this employs when there are: (i) reductions in the wage rate. (ii) increases in the price of the output. (iii) accumulations of specific training from workers. (iv) technological advances which encourage automation. (
Increases within the wage rate all the time: (w) lack impact on the relative price of leisure. (x) increase the relative price of leisure. (y) decrease the relative price of leisure. (z) increase the quantity of individual labor supplies.
Relative to evenly strong, smart, and hard-working people along with less education, and the high school graduates who invest most heavily within more advanced formal education are probable to experience lower average: (w) wages when first entering th
Illustrates the pricing policy and practices?
A requirement of equal pay for workers along with equal amounts of education, responsibility, and experience is termed as the doctrine of: (1) marginal productivity. (2) non-exploitation. (3) central wage planning. (4) comparable wort
The most valuable human capital onto the given list would be possessed through a person who: (w) inherited a great deal of money. (x) invested large sums on the stock market. (y) had an advanced degree in music education. (z) specialized like a medica
Illustrates the demand schedules important for law of demand? Answer: The perception of law of demand may be explained along with the demand schedules are as follow:
A cartel is more likely to succeed and survive when: (w) members respond to incentives to cheat. (x) fringe producers are not members. (y) total market demand is less elastic. (z) close substitute goods are simply developed. Q : Explain the target pricing briefly Explain the target pricing briefly.
Explain the target pricing briefly.
States the Welfare Definition in economics?
18,76,764
1956847 Asked
3,689
Active Tutors
1438671
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!