Abstract:
Pricing is the only element which gives returns respond to all the expenses and so essential aspect of organization growth. Despite the knowledge about its strength why it is been ignored and overlooked by most of managers who take pricing decisions? The present research focuses to explore the meanings and application of price theory, objectives and pricing methods in general and its practical adoption to the firm. Pricing is an essentially important organizational action which is having key strategic and operational inferences (Shipley & Jobber, 2001).
“Pricing Objectives and Methods: A managerial challenge to take pricing decisions (UFONE)”
The author aims to look at the theoretical aspects related to pricing theory and methods.
1. To explore the price theory and its influence over the selection of pricing methods and objectives
2. To investigate the application and relevance of various pricing methods and strategies respect to pricing objectives
3. To explore and adopt the most suitable research methodology and methods for a research work of this kind
Why the Price is having enormous importance and significance in all the elements of marketing mix? That because of other three elements, Product, Promotion and Place adds costs to the business whereas Price produces revenues (Kotler et al., 2007, p.363). It can be supported by the number of research studies which indicates that consumers considers price as an indicator of product quality and such characteristics of the products and services defines the price/quality relationship (Schiffman & Kanuk, 2007, p.183).Pricing is not only limiting its influence to the business performance but it also plays significant role in describing and managing the economy. Percentage rises for the prices compared to past years or base year easily provide the sequential information which can be easily analysed and understood. The tools that are used by most of the government and business houses are Retail Prices Index (RPI) and Consumer Prices Index (CPI). These indexes plays vital role to illustrate and interpret the change in business, economic and social variables over time (Curwin & Slater, 2008, p.165, 187).
Pricing is having significant importance level because it “captures value” in the direction where company wishes to go and also provides most crucial business outcome - Profitability to the firm (Cram, 2006, p.2). It is also discussed by Munnukka (2008) that price been seen as
