Published Online: Nov 24, 2015
Page range: 366 - 369
DOI: https://doi.org/10.1515/kbo-2015-0061
Keywords
© 2015 Cecilia Elena Văduva, published by De Gruyter Open
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.
The company has to anticipate the reactions of each party and to prepare the decisional variants to make possible the achievement of the pursued goals. The external factors are difficult to control in the company and confer the exogenous variable character to the price. The most important of these factors are: demand, competition, distribution, legislation and inflation.
The demand for a certain good is influenced by its price, constituting the determinant factor and also the non-price factor that appears under the name of the demand conditions.
The inquiry of the secondary sources supposes the analysis of the records in regard with the sales and prices in previous period.
The secondary data can serve as starting point in performing simulations of sales for different price levels. This information should also refer to the total sales in the market level and the competitors’ prices not only in sales and the company’s prices.
On a competitive market, the main source to support profitability is the competitive advantage and not a held market share. The price must be a tool in supporting and functioning of the competitive advantage, leading to the idea that the price is the reflection of this advantage in the profit equation.