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Vibar RRL

This document reviews literature related to pricing strategies of cafes in Kidapawan City. It discusses several key points: 1) Customer focus and understanding customer requirements are important factors for business success and development. Meeting customer needs increases revenue, employee performance, and customer satisfaction. 2) Price is a major factor that influences consumer purchasing decisions. Consumers are willing to pay more if a product's value matches its price, which considers additional benefits. 3) For pricing strategies, companies should communicate a product's value to customers and consider competitors' prices and their impact on sales. Market-based pricing and competition-informed pricing are common approaches.

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855 views2 pages

Vibar RRL

This document reviews literature related to pricing strategies of cafes in Kidapawan City. It discusses several key points: 1) Customer focus and understanding customer requirements are important factors for business success and development. Meeting customer needs increases revenue, employee performance, and customer satisfaction. 2) Price is a major factor that influences consumer purchasing decisions. Consumers are willing to pay more if a product's value matches its price, which considers additional benefits. 3) For pricing strategies, companies should communicate a product's value to customers and consider competitors' prices and their impact on sales. Market-based pricing and competition-informed pricing are common approaches.

Uploaded by

MonMon Mimbala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PRICING STRATEGIES OF EVERY CAFE IN KIDAPAWAN CITY

CHAPTER II

REVIEW OF RELATED LITERATURE

Customer focus is the first QMP and one of the key factors of successful and
development performance. The international standard ISO 9001:2008(ISO, 2009
describes this principle as follows: "Organizations depend on their customers and
therefore should understand current and improving performance, should meet
customer requirements (Dudu & Agwu, 2014).

This standard identifies three key benefits of this principle: development


revenue and Employees performance obtained through flexible, increased
effectiveness in the use of the organization's resources to enhance customer
satisfaction, as well as improved employee's loyalty leading to repeat business (Crick
& Spencer, 2011)

This study contributes to pricing strategies and the buying decision process.
The study recommends that companies should communicate value to customers
through price, companies should also take notice to competitors' prices and verify
the impact on product purchases. Price is very influential on consumer purchasing
decisions. (Faith & Edwin, 2014)

The price is the amount of value assigned to the product or service. Price is
an element in the marketing mix, which plays a very significant role because
marketers use price as a means of communicating with customers, through which
the message is clearly perceived by customers as intended by marketers
(Shaharudin, Angely, Anita, & Khin, 2012).

Consumers are willing to pay more for a product if they believe it is


commensurate with the value they get from the product, which may be as a result of
the additional benefits obtained or enjoyed from the consumption of the product.
Based on the research by Jenny Zhan & Brenda Vrkljan (2011), when buying
second-hand vehicles or new vehicles, price becomes the priority for consumers,
including long-term costs, occurred from the purchased vehicles, insurance, and fuel
cost

Purchase intention is defined as the probability of consumer readiness to


purchase a product in the near future ( Wu et al. 2011). Price is a major factor that
influences purchasing decisions. It follows that purchase intention is an effective way
to predict buying processes ( Farooq et al. 2015;Gogoi 2013;Shah et al. 2012).
Price is a major factor that influences purchasing decisions (Faith and Edwin
2014; Khanna 2014). Per Neubert (2017), it is important for companies to implement
price-setting strategies that are designed to achieve their sales targets and profit
objectives.

Advancements in technologies, emphasis on preventive care, and increased


health awareness led to a growing market of home health medical devices. This
study examines how and why price-setting strategies are established for Home
Health and Direct to Consumer (HHDTC) medical devices using a multiple case
study methodology based on eleven SME interviews as primary data source. The
theoretical framework of Neubert (Cent Eur Bus Rev 6(3):41–50, 2017a) is used for
this study. Study results suggest that mainly market-based price-setting strategies
and competition-informed price-setting practices and to a lesser extent value-
informed price-setting practices are used for pricing decisions of innovative HHDTC
medical devices.

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