Pricing Objectives

Firms utilize strategies such as price and promotional reduction to minimize cost, maximize revenue, and thereby optimize profits.

Return on investment (ROI) is one way of considering profits in relation to capital invested.

Market share is an indicator of how well a firm is doing against its competitors and can often be influenced through pricing.

Firms can engage in premium pricing by keeping the price of their good artificially higher than the benchmark price.

Status quo pricing is the practice of maintaining current price levels that other firms are charging.