Customer have different requirement in a different stages of economic development, so that they have different points of view towards the same product or service quality. Thus, each company must analyze carefully customers' common and personality need by each different period of economic growth, thereby customer value can be maximize. Both of consumers' perceptions of fairness and customer satisfaction are factors influence customer value perception. Consumers' perceptions of fairness are including Consumer Perceptions of Service Fairness and Price Fairness. Perceived fairness is paramount to long-term revenue maximization (Taylor& Kimes, 2011, pp.272).
The customer’s satisfaction or dissatisfaction with the product will influence subsequent behavior, if the consumer is satisfied, then he/she will exhibit a higher probability of purchasing the product on the next occasions. If the consumer is dissatisfied, then they switch to another brand. Brand Promotion Brand Promotion is to raising customer awareness of a product or brand, generating sales and creating brand loyalty. Brand Trust Brand Trust is expressed as the belief of consumers that the brand will fulfill certain functions. Brand tryst is an important mediator factor on the customer behavior before and after purchase of the product.
The rational expectations theory is often used to explain expected rates of inflation. For example, if inflation rates within an economy were higher than expected in the past, people take that into account along with other indicators to assume that inflation may further increase in the future. The rational expectations theory also explains how producers and suppliers use past events to predict future business operations. If a company believes that the price for its product will be higher in the future, for example, it will stop or slow production until the price rises. Since the company weakens supply while demand stays the same, the price will increase.
After developing a pricing strategy, then begins the process of marketing of the product. They are both vital in topping up the sales. It is also important to identify what kind of product to sell in order to determine the type of business. The first type of business is volume driven where prices can be manipulated up and down. Questions are asked whether
Pricing strategies to attract customers / increase profit • Premium pricing Strategy: - This occurs when an organization makes a good more expensive to try and give the impression that it is better quality, e.g. ‘premium unleaded fuel’, fashion labels. • Price Discrimination Strategy: - This involves charging a different price to different groups of consumers to take advantage of different elasticity’s of demand. There are different types of price discrimination from second degree to third degree. • Reference Pricing Strategy: - This involves setting an artificially high price to be able to later offer discounts on previously advertised price.
Farahmand and Chatterjee (2008) conceptualize price within the auspices of the value assigned to something bought, sold or offered for sales, expressed in terms of monetary units. It also pertains to how buyers view a product’s price, as high, low or fair, which ultimately affects consumers’ willingness to buy the product (Ahmad & Vays 2011). Pricing is a crucial strategic variable due to its direct relationship with the company’s goals and its interaction with other marketing mix elements (Yesawich 2004). Pricing enables companies to segment markets, define products, create incentives for consumers and even send signals to competitors (Atchariyachanvanich & Hitoshi 2007). Goods and services must be priced in a way that achieves profitability for the company and satisfies customers, in addition to adapting to various constraints such as competition (Sahay 2007).
Basically changing values of customers need changes in seller value. Seller try to put a perceived value in the product to manage it a price. Considering the value. We will see the impact of value changes in consumer prospective. 1) Value guides consumer purchase- people search for value in their product.
Government has the authority to utilize resources in the country for the benefits of the people. If resources are unavailable, or the demands of the resources are limited that will lead to scarcity. The unlimited needs and wants of people cannot be address. To allocate resources efficiently, government enforce policies or laws to supply the demand of the people. David Easton’s concept is very much economics.
National income level , operating , unemployment , training and qualification , productivity ... and generally there is a correlation between price changes and the responses of the supply and demand which is called the price elasticity relationship for both demand and supply (price elasticity of demand and supply). It reflects the ratio of the changes in the quantity supplied or required to the relative changes of prices.Flexibility is affected by several factors including: the degree of importance of the item to the consumer,its share in total income,susceptibility for re-storage, the extent of its dependency on natural factors and conditions, trends and tastes and technological level. Supply, Demand, and Economic Growth Supply and demand are the main engines for the economic growth, and this would be achieved by the total interaction between the supply and the demand on the term of the national economy and it includes: 1. The total institutions, companies, and facilities of all kinds that supplies or imports goods or services. 2.
Price of the intimate has been identified as a key factor in the choice of intimate brand, especially most consumers. The product’s price may vary based on economic conditions and perceptions of the consumers. It may affect the brands’ perceived value. Price is used by many of the consumers as an indication of the brands’ quality which is a vital factor in the purchase decision (Nilson, 1998; Kotler and Amstrong, 1989). The price has identified as the amount of money those customers of any product interchange to acquire that particular good or service, or the worth they obtain (Kotler and Armstrong, 2010).