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The Quality Impact in Substantiating the Price Decisions
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Journal Article
The Quality Impact in Substantiating the Price Decisions
2015
Overview
The price plays a decisive role in achieving the company's objectives, no matter what they are and, generally speaking, in ensuring the success of the company's overall strategy, its proper level relative to the product's quality being the crucial aspect, considering that the situations in which wrong price decisions compromised the overall company strategy were not rare. The substantiation of the price decisions is a science and an art in the same time, being based on precise calculations and sound reasoning, which doesn't exclude elements based on intuition, flair, presentiments, experience, elements that relate to the management seen as art. A sound reasoning implies the right types of questions from the persons involved, and an understanding of the overall factors that determine the success of some price decisions and the failure of others.
