IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY
The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only...
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doaj-86a51674824248b1981d7807e0d8ea6d2020-11-24T23:47:59ZengUniversitaria Press CraiovaManagement & Marketing1841-24162007-01-011177184IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITYAndrea Erika NYÁRÁDIThe way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitability many are abandoning traditional reactive pricing procedures in favor of proactive pricing, making explicit corporate decisions to change their focus to growth in top-line sales to growth in profitability. The long-term implications of price strategies are still under-researched, and managers should be aware of shifts in customer reactions that may result from frequent adoption of certain strategies. The company pricing strategy should be seen in relation to developments in the company variables, internal ones (capital strength, competencies, organizational conditions, efficiency of the work force etc.) as well as external ones (customers, competitors, the technological development etc.), adopting strategic pricing. In this paper I will present the most effective pricing strategies leading to long term profitability, and also suggest practical conditions for pricing strategies to maximize profit in the long run.http://www.mnmk.ro/documents/2007/2007-22.pdfstrategic pricingoffensive pricing |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Andrea Erika NYÁRÁDI |
spellingShingle |
Andrea Erika NYÁRÁDI IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY Management & Marketing strategic pricing offensive pricing |
author_facet |
Andrea Erika NYÁRÁDI |
author_sort |
Andrea Erika NYÁRÁDI |
title |
IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY |
title_short |
IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY |
title_full |
IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY |
title_fullStr |
IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY |
title_full_unstemmed |
IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY |
title_sort |
is the price right? pricing for long term profitability |
publisher |
Universitaria Press Craiova |
series |
Management & Marketing |
issn |
1841-2416 |
publishDate |
2007-01-01 |
description |
The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitability many are abandoning traditional reactive pricing procedures in favor of proactive pricing, making explicit corporate decisions to change their focus to growth in top-line sales to growth in profitability. The long-term implications of price strategies are still under-researched, and managers should be aware of shifts in customer reactions that may result from frequent adoption of certain strategies. The company pricing strategy should be seen in relation to developments in the company variables, internal ones (capital strength, competencies, organizational conditions, efficiency of the work force etc.) as well as external ones (customers, competitors, the technological development etc.), adopting strategic pricing. In this paper I will present the most effective pricing strategies leading to long term profitability, and also suggest practical conditions for pricing strategies to maximize profit in the long run. |
topic |
strategic pricing offensive pricing |
url |
http://www.mnmk.ro/documents/2007/2007-22.pdf |
work_keys_str_mv |
AT andreaerikanyaradi isthepricerightpricingforlongtermprofitability |
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