Low-Cost Pricing Strategy and its Application in Business Environment (Essay Sample)
PRICING CRITERIA ARE ONE OF THE GREATEST CONCERNS IN BUSINESS WHEN IT COMES TO PROFIT MAXIMIZATION. BUSINESS EXISTS IN ORDER TO EARN A PROFIT BY UTILIZING SCARCE RESOURCES IN ECONOMIC MEANS. what is low-cost pricing strategy. its application in business environment
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Low-Cost Pricing:
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Low-Cost Pricing.
Pricing criteria are one of the greatest concerns in business when it comes to profit maximization. Business exists in order to earn a profit by utilizing scarce resources in economic means. Profit is a function of cost and revenues and thus managers must evaluate and assess any factors which can have a significant impact on it. For instance, prices of commodity determine purchasing power of customers and this can affect demand and supply forces in general market. To ensure equilibrium in the market, low-cost pricing strategy needs to be embraced positively.
Low-cost pricing strategy entails setting low prices for products and goods with aim of triggering demand to increase while allowing the company to manage a significant market share of the
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