chapter  9
The Pricing Decision
WithD. C. Hague
Pages 15

This chapter looks at business objectives and, in particular, identified the objectives which our firms pursued in their pricing decisions. It considers information for pricing decisions. The chapter distinguishes between the information firms would have in an ideal world and the information they actually had. The firm can discover what percentage of its capacity would be employed at each alternative level of price. More than one man was involved, so that information had to be exchanged in meetings; but only a handful of key individuals took decisions and their various roles in the pricing process could be fairly easily identified. Any other necessary calculation about levels, or changes in levels, of production, inventory can be made too. For each level of price or advertising expenditure being considered it will also be necessary to calculate what will be sales volume, profitability.