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Profit Maximization Through A Differential Pricing Strategy

Author

Listed:
  • Vasile DEAC
  • Cosmin DOBRIN
  • Adriana DIMA (GIRNEATA)
  • Laura Violeta VOICU

Abstract

The practical approach of strategy formulation, given the company's mission, is based on the key strategic objective that is to be achieved through the respective strategy. The strategic objective is different from one company to another, even in the case of competing companies, and different from one period to another, even within the same company.Companies can have very different strategic objectives, such as sales-oriented objectives (achieving a certain volume of sales, achieving a certain market share), objectives such as survival of the company (especially in a context of crisis and fierce competition) market dominance through product quality and others. But whatever the fundamental objective in the medium or short term, one cannot omit the objective of profit, or maximization of profit, which is the ultimate goal of any economic organization. At the same time, whatever the targeted strategic objective, price has a decisive role in achieving it and, in general, in the success of the overall strategy of the company. There are numerous situations in which a wrong price strategy compromised the overall strategy of the company. Within this paper, we intend to highlight how a differential pricing strategy can contribute to maximizing profit.

Suggested Citation

  • Vasile DEAC & Cosmin DOBRIN & Adriana DIMA (GIRNEATA) & Laura Violeta VOICU, 2016. "Profit Maximization Through A Differential Pricing Strategy," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(1), pages 234-244, November.
    • Handle: RePEc:rom:mancon:v:10:y:2016:i:1:p:234-244
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    References listed on IDEAS

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    1. Adriana Girneata & Cosmin Octavian Dobrin, 2015. "Complaining Behaviour and Consumer Safety: Research on Romania Online Shopping," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 161-175.
    2. Miguel Martinho, 2008. "Port Competition and Hinterland Connections," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/19, OECD Publishing.
    3. ., 2008. "Competitive Markets and Price Regulation," Chapters, in: Microeconomic Policy, chapter 4, Edward Elgar Publishing.
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    Cited by:

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    2. Abdo KATAYA, 2021. "The Impact of Covid-19 Pandemic on International and Lebanese Tourism Indicators," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 5-13.
    3. Reine A. TFAILY, 2017. "Organizational Performance And Competitiveness Of Spa And Wellness Centers," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(1), pages 164-174, November.

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