Introduction.
Business is one of the oldest exercises in humans' life, it was very simple in the past, there was no money, and therefore, people used to exchange goods. They were sacrificing unnecessary stuff in order to get goods that have greater value or needs. Nevertheless, modernisation has changed that kind of trade by increasing the value of money, so people could use it to buy these stuff rather than exchanging goods to have it. Nowadays, business contains a huge number of sections such as accounting, human resources, manufacturing and marketing. One of the most important sections in business is marketing. It has been defined as the processes to deliver a product from the producers to the consumers.
Marketing is plying a very important role in the cycle of business, the specifications of a product are based on information provided by marketing researches. In addition, this information also used to set an appropriate price for this product, and to choose the best place to selling it and to promote for it. However, customers are the main point of the existence of any company. Wherefore, the producers must know what could satisfy those customers. The factors of product's cycle are always under the control of the producers except the behavior of customers who must be satisfied, otherwise the cycle of their products will not be completed.
Regarding to the continuation of the companies, it is important for the producers to satisfied customers. One of the effective ways to achieve that is by using price strategies to gain customer satisfaction. Money has strong effect on people because it is easy to measure wither the product worth the price or not. Consequently, producers could use price strategies ...
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...evertheless, the thesis of this paper, which is using price strategies could lead to satisfied customer, has been supported by the previous researches. However, further research would be important, due to the small number of researches which have concentrated on the role of price to gain customer satisfaction.
Works Cited
Glenn B. Voss, A. Parasuraman, & Dhruv Grewal. (1998). The Roles of Price, Performance, and Expectations in Determining Satisfaction in Service Exchanges. The Journal of Marketing, 62 (4), 46-61.
Martin-Consuegra, B. Molina, A. & Esteban, A. (2007). An integrated model of price, satisfaction and loyalty: an empirical analysis in the service sector. Journal of Product & Brand Management, 16 (7), 459-468.
McWilliams, B. and Gerstner, E. 2006, "Offering low price guarantees to improve customer retention". Journal of Retailing, 82(2), 105-113.
A couple of Squares has a limited capacity for which to produce their products and smaller companies tend to have larger fixed costs than bigger companies. Therefore, A Couple of Squares must maximize profits in order to ensure that they will stay in business. A profit-oriented pricing objective is also useful because of A Couple of Squares’ increased sales goals. A Couple of Squares increased their sales goals due to recent financial troubles. Maximizing profits is the easiest way to meet these sales goals due to the fact that A Couple of Squares has limited production capacity. The last key consideration favors a profit-oriented pricing objective because A Couple of Squares offers a specialty product. A specialty product often has limited competition, therefore can be priced on customer value. Pricing at customer value will maximize profits as well as customer satisfaction. A Couple of Squares’ lack of production capacity, increased sales goals, and specialty product favor a profit-oriented pricing
Introduction. Customer loyalty is basically defined as a deep held commitment to re-buy or re-patronize a chosen product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1997). It is a main driver for customer retention, which, in its turn, represents a basic force that accumulates a customer base for the company. As the experience suggests, the presence of the customer base is a valuable asset, because a lot of statistical data and marketing researches have proved that it is harder and much more expensive to acquire a new customer rather than retain an existing one. In this aspect, any business without a focus on customer retention is left on market’s mercy: any market movements will affect the sales in a more intense manner. There is also a risk that your competitor may eventually satisfy the existing customer’s needs and take away a part of your market niche. Moreover, customer loyalty gives a sort of discretion to the company’s R&D policy and marketing strategy: you can try to introduce different features to your products, experiment with different types of ads, and no matter what the results would be, — the customers will stay stick to your production line. Of course, an organization does not have an absolute control over the loyalty of its customers, bec...
In 2010, for instance, Wal-Mart racked up over $400 billion in sales. Instead of offering just selected items at a low price to bring in customers, Wal-Mart uses its massive buying power to force supplier companies to become more efficient and sell products at a low price all the time. (Huebsch, n.d.). Thus, Walmart strategy is firstly oriented towards low prices. In order to reach it, it has to work more efficiently than its competitors, lower the costs inside the company and also the prices of the supplier provided products. In a company, which has chosen low price strategy, one should not expect high salary or the best customer service (Stankevičiūtė, Grunda, & Bartkus, 2012).
Zeithaml, Valarie A, Berry, Leonard L, & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31. Retrieved April 1, 2011, from ABI/INFORM Global. (Document ID: 9401886).
Marketing In this day and age is vital for a company to perform at its possible best. Marketing’s main focus is to give great satisfaction to a customer. There are many aspect of marketing, these aspects give marketer’s the tools to help strive for the best possible success they can achieve. They hope that they can create exposure for their brand, product or service.
Price Based Theories - This first theory focuses on the classification and study of the quality price relationship. And this led to the initial conceptualization of value as a cognitive tradeoff between perceptions of quality and sacrifice. As per this view the external ques influence product quality and value. Various instances so offered by Agarwal and Teas (2001, 2002, 2004); Dodds and Monroe (1985); Dodds et al. (1991); Grewal et al. (1998a); Li et al. (1994); Monroe (1979, 1990); Monroe and Chapman (1987); Monroe and Krishnan (1985); Oh (2003); Teas and Agarwal (2000); Wood and Scheer (1996) state the importance of price which does a bearing on the marketability of a
Pricing is an important aspect of every business. Chief Financial Officer’s (CFO) use pricing to create financial projections, establish a break-even point, and calculate profit and loss margins (Power Point, 2005). It is the only element in the marketing mix that produces revenue. Price is also one of the most flexible elements of the marketing mix as it can be changed very quickly. This is usually done to beat competitor prices in an attempt to fix the product’s market value position very low (Anderson & Bailey, 1998). After all, high prices make it difficult to become the market share leader. The leading US retailer, Wal-Mart, is an expert at low product pricing as evident in 2004 with $250 billion dollars in sales to their 138 million weekly shoppers. However, they are also responsible for reducing prices so low that it drives specialty stores out of business. This is the effect Wal-mart has had on many toy stores and has almost closed the doors of the famous toy store Toys “R” Us Inc.
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
Customers participate in pricing strategy is a way to add customer value before purchasing the products or service. Price, as a cue to assess the relative value across the array of products and services found in the marketplace, is a key element of marketing strategy. There are lots of pricing strategies utilize by different companies , including price-quality strategy, reference pricing strategy, bundle pricing strategy, overpricing strategy, price guarantee strategy and participative pricing strategy, etc. Among these strategies , participative pricing strategy is the one that involves customers in the price setting process. A firm that would like to apply the collaborative marketing in their pricing should consider different forms of participative pricing strategy. There are various forms of participative strategy, including classic auction, reverse auction, exchange, negotiation, PWYW( pay what you want ) and NYOP ( name your own price). These forms of participative pricing strategy on one hand adding customer value in controlling the price, one the other hand increasing a firm’s sales by the greater intent for custo...
There is no one best practice for establishing the price of new products or modifying the price of existing products. The firm’s objectives, markets, costs, competition and customer demand patterns must be integrated in every price setting decision.
Variables in this article are: Customer satisfaction, Customer loyalty, Service quality, Price , corporate image and customer service. Customer satisfaction, service quality ,price ,corporate image and customer service are the independent variables whereas Customer loyalty is considered as dependent variable. Aggregately , 6 variables are considered for analysis, out of which 4 are independent and one is dependent. (Ali, Ali, Rehman, Yilmaz, Safwan, & Afzal, 2010).
...e enough because the company has chosen the best possible way to increase the company performance. The pricing strategy is the company’s best strategy from all because it affected the sales revenue a lot. Although fluctuating the price is quite risky for a business since the customers might order from other companies if the company doesn’t do it properly, but XXX Company manage to done it well so far. The effectiveness might also be seen by the average of sales revenue between January to August from 2011 to 2013.
It involves the vital process of researching, promoting and offering products or services to a company’s target market. Marketing is an important business process where the company can inform, attract and convince people that its products or services are of value to them. Without Marketing, many businesses would be unable to exist or operate well in the market. They could offer the most amazing product or service in the market, but if nobody knows about its existence or understands its value, these companies are unable to make a single sale thus they may have to be out of
Loyalty customers gain the more cost advantage and benefit, this resist competitors very hard to match. Promoted cost bind to loyal customers to sustainable growing.
Pricing is one of the four elements of the marketing mix. It is one of the most important elements because it generates a turnover for the organization. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Pricing is difficult and must reflect supply and demand relationship. Pricing a product too high or too low could mean a loss of sales for the organization.