MGMT100 Lecture Notes - Lecture 9: Image Editing, Customer Satisfaction, Microeconomics
Document Summary
Developing pricing objectives: pricing objectives must support the objectives of the company, sales or market share objectives. Often the objective of a pricing strategy is to maximise sales or to increase market share. Lowering prices is not always necessary to increase market share. If a company"s product has a competitive advantage, keeping the price at the same level as other companies may satisfy sales objectives. Competitive effect objectives mean that the pricing plan is intended to have an effect on the competition. Sometimes a company may deliberately seek to pre-empt or reduce the effectiveness of one or more competitors by reducing price. Many quality-focused companies believe that profits result from making customer satisfaction the primary objective. These companies believe that by focusing solely on short-term profits, a company loses sight of keeping customers for the long term. Consumers use price to make inferences about the quality of a product.
