Why is low price not always the best strategy

Why is low price not always the best strategy

#7 Why is low price not always the best strategy? (Professor)

We all love low prices, or at least lower prices.  However, as a company a low price strategy may not be the best decision to follow.  There are many dynamics that come with low price.

For the class:

Why would a company adopt a pricing strategy that is not low price?

#8 In what ways do pricing constraints impact price setting? (Student)

Prices are everywhere because nothing is for free. When products are low in price they are purchased in larger quantity. Deceptive pricing can be buy one get one free nothing is for free it is added on to the price. Demand factors sometimes would drive up the price because of many individual’s high availability to pay. Many healthy foods are expensive because of high demand for food without GMO’s. Many poor people are big as a result because many cannot afford healthy food and buy unhealthy.

…………………….Answer preview………………………..

The major goal of companies is maximizing profits while in competition to sustain the competitive marketplace. Low prices may attract many customers; however, a low pricing strategy may not be the best for a company for various reasons. When a company adopts a low pricing strategy…………….

APA

305 words

Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below