An Imperative Study of Customer Satisfaction on Pricing Strategy

Pricing is the back bone of Customer Satisfaction. Capital, as one part of factors of production (land, labour, capital and organization) places an important role in the determination of rate of interest. Thus, the rate of interest is pricing of capital in which customer expectation is very high. The art of pricing may seem like a mundane chore to most retailers. But in reality, it is a complex task that involves an understanding of basic economic and business principles, a certain skill level, and a dash of basic creativity and perhaps evens a measure of extra sensory perception. Done correctly, pricing helps a business flourish and meet its financial objectives. Done poorly, pricing hampers a business's growth and cripples its capacity to operate effectively. This paper intends to study different pricing strategies in retailing industry. Example of stores using either everyday low pricing (EDLP) or high/low pricing and factors affecting pricing decision for retailers will be discussed in this paper. To strengthen the study, magic price points, private label, convenience shopping, consumer behavior towards price change and Efficient Consumer Response (ECR), an emergence strategy aim to add value to customers, are included in this discussion as well.