What are the main objectives of price research?

Price of a product is an important element in marketing research price must be suitable for consumers as well as producer. The price must be affordable to consumers. Price is a exchange value of a product. It is the main source of revenue consumers choice is mainly affected by price of product.

1. Survival

To survival in competitive market price of the product must be changed as per economy e.g. in recession price of product must be minimized so the consumer can buy the products and company can fulfill its requirement of working capital. To survive, company requires proper inflow of funds and price of product is a main source of inflow so it should be properly managed.

2. To Maximize Profit

Maximize profit is the main aim off business concerns. Profit can be maximized by increasing the price of a product when there is a good demand for it and decreasing the price when production is more than the demand. Lowering the price may create demand for the product.

3. To Increase Market

Price is useful in increasing market area of a product. Fixing a price enables a business concern to stable in current market and search for new market area and thereby increasing market share.

4. Image Building

Company can create its image among the consumers by fixing proper price to its product. Moderate price for high quality product should be charged so that it will create distinct image in the market.

5. To Get Early Cash Recovery

If any company face liquidity problem or if any company feels that the life cycle of product is short, in that case company requires getting early cash by selling these products and for that is requires proper pricing.

6. Customer Satisfaction Objectives

A quality product producing company feels that consumer satisfaction is their profit is not only measured in terms as rupees but it can be measured in terms of consumers’ satisfaction. And to satisfy consumers, a good quality product must be supplied at reasonable price to the consumer.

7. Social Responsibility Objectives

All firms whether profit making or non profit making must have social responsibility. Providing best quality goods and services at reasonable rate is also a social responsibility.

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