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New Product Pricing Strategy and Product Performance Assessment in Fast Moving Consumer Goods

Author

Listed:
  • R. Agus Trihatmoko
  • Dian Indri Purnamasari

Abstract

Purpose: This article combines the two perspectives of management interests, namely marketing and finance regarding Fast Moving Consumer Goods (FMCG). The aim is to uncover the marketing environment on pricing strategies in a competitive market environment, product and financial performance as well as assessing product success based on price strategies. Design/methodology/approach: Qualitative research methods are used by the design of a combination of grounded theory and phenomenology, as well as constructive approaches. Findings: The results identify that the marketing environment in terms of price is a consideration of buyer’ decisions and is related to the product marketing environment, and the environment of market competition, namely price activities, antecedents and price outcomes. The marketing environment of price is created based on the marketing environment of product and consumer market competition, while the product performance is determined by the environment of business and consumer market competition. These findings contribute to the conception of business buyer behavior and the marketing mix. Practical implications: The results implications refer to the practice of corporate management on financial management of working capital, and marketing management in general. Originality/value: The originality of this paper comes from the exploration of pricing strategies in an effort to determine the relevance between product performance and finance, and the success of new "FMCG" products.

Suggested Citation

  • R. Agus Trihatmoko & Dian Indri Purnamasari, 2019. "New Product Pricing Strategy and Product Performance Assessment in Fast Moving Consumer Goods," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 417-423.
  • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:4:p:417-423
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    References listed on IDEAS

    as
    1. Jerry Hausman & Gregory Leonard & J. Douglas Zona, 1994. "Competitive Analysis with Differentiated Products," Annals of Economics and Statistics, GENES, issue 34, pages 143-157.
    2. repec:adr:anecst:y:1994:i:34:p:06 is not listed on IDEAS
    3. R. Agus Trihatmoko & Saud Napitupulu & Dian Indri Purnamasari & Hudi Kurniawanto, 2018. "An Assessment of The Demand for New Products of Fast Moving Consumer Goods (FMCG)," Business Management and Strategy, Macrothink Institute, vol. 9(2), pages 18-39, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. R. Agus Trihatmoko, 2019. "Intensity of Sales Turnover and Promotional Expenditure and the Likelihood of New Product Success: Configurational Matrix of Fast Moving Consumer Goods (FMCG)," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 320-328, December.

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    More about this item

    Keywords

    Pricing strategy; new product; marketing mix; business buyer behavior; fast moving consumer goods (FMCG); financial performance.;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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