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The Price is right Guidelines for Pricing to Enhance Profitability Case Solution & Answer

The price is a key element of the marketing strategy. It requires no investment or significant resources and is perhaps the most accessible lever to manage profitability. Even slight fluctuations in prices can have a significant impact on revenue and profitability. As such, the lack of careful planning in terms of price is a missed opportunity. With this background, we make a case precision in assessing improve profitability. Since consumers vary in their preferences, motivations and propensity to spend, attach different degrees of emphasis on price in their purchasing decisions. We argue that the price is a creative exercise in mathematics and behavioral economics and business must remain focused on the benefits. We also provide a set of guidelines for creating a profitable basis and then modify them to improve profitability. Finally, the price-level monitoring of the transaction will reduce leakage of benefits and add to the bottom line.
by
Chiranjeev Kohli,
Rajneesh Suri
Source: Business Horizons
11 pages.
Date Posted: November 15, 2011. Prod #: BH456-PDF-ENG
The price is right? Guidelines for improving profitability Prices Case Solution

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