Section 2
Pricing Objectives
Book
Version 6
By Boundless
By Boundless
Boundless Business
Business
by Boundless
5 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/2112/square/te-utility-optimization.jpg)
Profit Optimization
Firms utilize strategies such as price and promotional reduction to minimize cost, maximize revenue, and thereby optimize profits.
![Thumbnail](../../../../../../figures.boundless-cdn.com/15678/square/financial-asset-management.jpeg)
Return on Investment
Return on investment (ROI) is one way of considering profits in relation to capital invested.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2114/square/rs-market-share-in-q3-2008.jpg)
Market Share
Market share is an indicator of how well a firm is doing against its competitors and can often be influenced through pricing.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2115/square/gold-quartz-34577.jpeg)
Demanding a Premium
Firms can engage in premium pricing by keeping the price of their good artificially higher than the benchmark price.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2119/square/competitive-market.jpeg)
Status-Quo Pricing of Existing Products
Status quo pricing is the practice of maintaining current price levels that other firms are charging.