Consumer satisfaction is important because it provides marketers and business owners with a metric that they can use to manage and improve their businesses. Hence increase in prices damages the already established consumer satisfaction. Harris, L. and Gurel, E., (1986) If the business would go for the argument of reducing prices of its products, the good effects will include; Increased sales volume. The law of demand and supply states that demand increase as prices decrease. The business will witness higher sales volume as the reduced prices will attract more customers to its products.
In creating a new company and implementing innovative sales systems, we would like to take some of our competitors business by initially drawing customers in with offering lower prices. Furthermore, in using this pricing strategy our hope is that we will be attracting customers to come in more frequently because they find a higher benefit or value when visiting our store. In turn with gaining more customers this pricing strategy will help us grow rapidly as a new
The increase disposal income enables households to spend some of this extra income on purchasing goods and services expanding companies supply rates or spend the income on investments, thus creating the supply for job opportunities and sometimes save the remaining income. Their increased spending leads to a larger consumption in the aggregate economy facilitating the circular flow of income. Companies that produce the much-needed goods and services for the increased demand have to subsequently increase their production. An increase in production to cater for the growing demand for goods and services may result in the supply for job opportunities increasing taxes remitted to the government. All these translates in the further increase of income levels and output in the economy.
This would be good for a company like Eddie Stobart as it means they can increase their profits due to more people using their service. This is also a benefit for Eddie Stobart as it would be cheaper for them to buy products for their company because all of the prices are cheaper in the boom stage. It may also make it cheaper for Eddie Stobart to expand their business further as their vehicles and the price of properties to buy and rent would be cheaper. This would be good for them as they can enhance their business further and therefore increase their products because of this. A disadvantage of the boom stage for Eddie Stobart is that they would have to decrease their prices to follow suit with their competitors.
The main reason of job opportunities increasing is manufacturing, investment activities, financial market and economy situation of Malaysia is attracted to the foreigners. This will increase the wages and compensation of workers. Because of the GDP growth too fast, increased wages of some citizens will lead to higher demand as consumers spend more freely. This will imply that the supply and demand will be increased and it will occur the shortage of supply. Business must hire more employees and further increasing demand by increasing wages.
Growth Stage In the growth stage, the firm seeks to build brand preference & increase market share. The impact on the marketing mix is as follows: • Product :- The product quality is maintained and additional features & support services maybe added. • Pricing :- The price is maintained because the firm enjoys increasing demand with little or no competition. • Distribution :- Sales channels are diversified & increased as demand increases & consumers start accepting the product more & more. • Promotion :- It is aimed at a broader audience.
Increasing the sales In these sales-oriented pricing objectives, knowledge gained from experience curve is put to some good use in predicting a strategy that's capable of decreasing long-term costs while ensuring a long-run profit, by increasing the number of units sold. For this purpose, companies may alter the prices or even whole pricing policies to improve their chances of getting a greater number of sales. Furthermore, brands can use the objective for the purpose of increasing the market shares also, which is a measure of the sales comparison with another brand's or in the whole industry. Aside from achieving a definite target of market share, companies can also use pricing to boost up their shares. Since, greater the price (to an appropriate level), greater are the chances to a larger proportion.
Quality products could achieve competitive advantage for an organization (Porter, 1985). As higher prices could be charged this will increase the profitability and achieve high market shares (Kumar et al., 2009). Therefore, TQM possibly will create products with high quality products, when organizations focus on process and quality improvements. This will increase the market share too. According to this information, the hypothesis would be: H1: TQM practices leads to improved market share H2: TQM practices generates better and improved quality products TQM is linked to high stock market performance and increases profit margins and revenues, hence, organizations with TQM in place can achieve competitive advantage (Lemak et al., 1997).
This due to two corporations which form a newly company that have a higher purchasing power to reach for a bigger market. In fact, after merger and acquisition take place, the value of shareholder for the newly formed corporation will greater than the sum of shareholder values of a single corporation. Hence, corporation benefits for the cost cutting as the volume of production increases that result in the cost of production per unit being reduced. This eventually enhance the raise economic of scale by producing a product with a lower cost and a better way. Other than that, merger and acquisition lead to a business expansion that contribute an organic growth for a corporation as one corpora... ... middle of paper ... ...oyees find jobs.
One major advantage associated with trading globally comes from an increase in profits. Typically, the reasons behind purchasing raw materials from a foreign country involve the fact that the materials are cheaper to buy and ship. In turn, this reduces overall expenses and as a result, companies can sell products for less. Supply and demand dictate that when products sell for less than the product of the competition and are of equal quality, the volume sold will rise. Increase in sales, along with the decrease in price of production will ultimately increase profits.