A descriptive theory of pricing for marketing

Abstract

Explores suitable ways of modifying cost‐plus pricing policies in the context of marketing based theory. Reports the findings of a research project concerned with the procedures followed in the pricing of consumer durables, and attempts to formulate an alternative statement of pricing behaviour to the cost‐plus theory. Recounts that an empirical study was made among 17 firms in the industry, ranging from smaller organisations manufacturing relatively simple electrical heating apparatus to the industry's larger firms manufacturing washing machines, refrigerators and spin dryers. Summarises that it is hoped the marketing approach to pricing, outlined there and in the accompanying table, will assist in developing sound marketing theory.

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