Pricing
pricing srategy adopted for pizza.
Pricing is so complex a task that there is a need to weigh
several factors and objectives of the company.
Profit-oriented objective
The products are priced with a provision for profits
that would give the target return.
If the objective is simply the profit goal, there is
a tendency of the company to set the price unrealistically
high. Competition is another consideration. What would be
the reactions of the competitors? Competition does not only
come from similar products but also from available substitutes.
Sales-oriented
Adopting a pricing strategy that focuses on sales may have
an objective of targeting growth in sales, market share
or discouraging competitors from getting a "slice of the
market pie".
Profits are sacrificed to the extent of incurring losses for
a short period.
So what do you think is the pricing objective of the oil
companies?
business,financial statements ,balance sheet ,statement
posted by cathy at 10:07 PM
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