Write are a response 1 reference from peer reviewed maketing journal within 5 years and 2nd from bible .. Bible interpetation Each of the two replies is at least 275 words and included a Biblical principle (verse) and explanation. An authored reference was used to support the content. Source used was unique (not used in previous postings by the author).Each of the two replies is at least 275 words and included a Biblical principle (verse) and explanation. An authored reference was used to support the content.
Some consumers are sensitive to the price of goods and services, while some are not. I believe the price is the most critical component of the 4 Ps marketing mix because it can make or break a company. Executives must determine the optimal price for products and services to make them profitable. Also, the price of a product or service impacts the firm’s bottom line directly. Thus, the firm’s long-term success can be harmed if executives do not set the correct price. This discussion post will discuss price and provide a biblical business integration.
Article 1- Cheaper and smaller or more expensive and larger: how consumers respond to unit price increase tactics that simultaneously change product price and package size
Generally, patrons are sensitive and opposed to price increases, but to improve and maintain profitability, firms may have to raise prices (Marn & Rosiello, 1992, as cited in Yao et al., 2020). According to Kachersky (2011), as cited in Yao et al. (2020), marketers of packaged groceries utilize one of the following two techniques to increase the price. They raise the product’s retail price without changing the package size or decrease the package size without changing the price. Also, they say that an additional way to increase the unit price of a product is to change the retail price and the product package size concurrently and disproportionally in the same direction. For clarification, a potato chip brand marketer may increase the size of their family-size bag of potato chips by 2% but raise the product’s price by 10%. Yao et al. (2020) studied consumers’ responses to concurrent price and size changes. They found that if price and size changed concurrently, patrons’ judgments depended upon the products’ unit price availability. Also, they detected indifference in consumer responses between concurrent increases and decreases in prices and sizes when the unit price was unavailable. In addition, they found that if directionally comprehensible price and package size changes occur concurrently and the unit price is not readily identifiable, patrons see the retail price increase separately from the degree of the package size increase. In contrast, they seem to process the price, and package size decreases from the standpoint of the unit price.
Article 2 – Pricing and lot-sizing decisions for perishable goods when demand depends on selling price, reference price, product freshness, and displayed stocks
In the United States, grocery retailing is a competitive, low-margin business (Li & Teng, 2018). Additionally, they say that the Reinvestment Fund (2011) reported that the average net profit for United States grocery retailers in 2010 was 1.9%. Also, they say that grocery stores must make large sales to counterbalance lower margins. In addition, they say that minor adjustments in grocery store prices significantly affect sales volumes and profit. Furthermore, they suggest that patrons have become more health conscious, and as a result, the demand for perishable goods has increased considerably. Therefore, they say that perishable goods have become a vital source of income in the grocery industry. So, they advise that pricing strategy is an essential success factor for grocery stores, reference price substantially impacts patrons’ purchasing decisions, greater inventory volume entices patrons to buy more, and perceived product freshness correlates to the product expiration date.
Conclusion
The need for a firm to develop an optimal pricing strategy is independent of the industry. Firms must be profitable to create and maintain longevity in their respective industries. Also, to remain profitable, firms must adjust their products’ prices and package sizes. For example, if the cost of raw materials increases, firms must pass that cost increase on to their consumers through price increases. Also, firms must set the right price to encourage patrons to purchase goods or services.
Additionally, patrons must perceive that the requested fee is at least equal to the patrons’ perceived value. In low-margin industries, such as the grocery store industry, even a tiny change in pricing can positively or negatively affect the firm’s bottom line. Thus, firms must be strategic in developing pricing strategies. Furthermore, pricing strategy is the most critical component of the 4 Ps marketing mix. If products are not priced appropriately, firms may have to discount the product price and sell the product at a loss.
Biblical Integration
Leviticus 25:14 says, “And if thou sell ought unto thy neighbour, or buyest ought of thy neighbour’s hand, ye shall not oppress one another:” (The Holy Bible, King James Version, 2016/1769). This bible verse reminds executives and society that the price for goods should not be a means to exploit one another. Consumers should expect to pay fair prices for their goods and services.Some consumers are sensitive to the price of goods and services, while some are not. I believe the price is the most critical component of the 4 Ps marketing mix because it can make or break a company. Executives must determine the optimal price for products and services to make them profitable. Also, the price of a product or service impacts the firm’s bottom line directly. Thus, the firm’s long-term success can be harmed if executives do not set the correct price. This discussion post will discuss price and provide a biblical business integration.
