BUS 330 Week 3 Discussion 1

Did your perception of these chains’ pricing strategies change based on this exercise? If so, how?Based on this exercise, identify three factors that complicate price comparisons.For you, which of these chains represents the greatest value and why? Explain how each of the Ps contributes to your answer.

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An important part of pricing strategy is deciding on what the company wants to achieve, profit maximization or volume maximization. Profit maximization is an approach to generate the highest net income over time, while volume maximization is to generate as much sales volume as possible (White, 2019). While each has a specific reason, they are often used together. A company’s brand is tied unequivocally to its price compared to others. The generalized pricing strategies are:

1.Penetration pricing – keeping prices low in comparison to the competition.

2.Neutral pricing – matching the price of the general market, differentiating on other aspects that drive consumer buying behavior.

3.Skim pricingsetting high prices to attract the luxury crowd with the most income.

Each of the pizza brands were evaluated by choosing a medium pepperoni pizza. Analyzing their price, the check-out process, and suggested options were all used in describing each of their strategies. The following are listed from least to greatest:

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