Price Adjustment Strategies

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Many people judge the quality of commodity by its price taking higher price as the sign of good quality&period; Sometimes customers do not have the information about the actual prices of products therefore they judge the quality of product by its price&period; Such type of behavior compels the sellers to increase the prices of their products despite the fact that the actual prices are low&period; Customers also carry prices in their minds&semi; such prices are known as reference prices&period; In order to get higher profits&comma; sellers have to influence the reference prices of the customers&period; <&sol;p>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<ul>&NewLine;<li><strong>Promotional Pricing<&sol;strong> <&sol;li>&NewLine;<&sol;ul>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">Many organizations try to promote their products by lowering down the prices of their products below list price or even cost&period; Such promotional pricing helps the marketers to attract the more customers in short period of time&period; However promotional pricing can be dangerous for the organization because it can spoil the overall reputation of organization&period; Similarly such practices are easily copied by the competitors and do not help the organizations to build their brand in the long run&period;&&num;160&semi; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<ul>&NewLine;<li><strong>Geographical Pricing<&sol;strong> <&sol;li>&NewLine;<&sol;ul>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p align&equals;"justify">Companies also charge different prices form the customers living in different parts of the country or world&period; If the customers are living in distant areas&comma; companies have to charge higher prices to cover the cost of shipment but this will result in the losing of customers to competitors&period; Therefore it becomes difficult for the company whether to charge the uniform prices through out the country or charge prices according to the geographical conditions in which the customers live&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<ul>&NewLine;<li><strong>International pricing<&sol;strong> <&sol;li>&NewLine;<&sol;ul>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">Many organizations operate in various countries of the world&comma; due to which they have to decide whether to charge uniform prices or sell products according to the situations of the countries in which the organizations operate&period; There are various factors which affect the price decision of the companies such as consumer perception&comma; economic conditions&comma; law and order situation&comma; marketing objectives of the company etc&period; These factors help the organizations whether to charge similar or different prices through out the world&period; For example in many cases organizations charge higher prices from the people living in remote countries because of differences in their per capita income&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;