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Essay text:
If organization wishes to build long-term relationships with customers they must make sure their customers actually use their products and the first step is pricing. According to this article, pricing pays an important role on the firm's long-term profits and customer retention. Prices of products and services influence the consumption patterns of people in the sense that if consumers would not use a product or service then they are unlikely to purchase it again. In this article the authors argue that the relationship between pricing and consumption lies at the core of customer strategy.
PRICING
In business it is possible to have the very best product or service and have excellent sales volume; but if the wrong pricing policies has been set on the product or the service, the business will eventually fail...
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Common topics in this essay:
- Capital Asset Pricing Model (CAPM)vs.Arbitrage Pricing Theory (APT).
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