THE ANALYSIS AND THE ROLE OF THE FACTORS INFLUENCING PERCEPTIONS OF VALUE Cover Image

THE ANALYSIS AND THE ROLE OF THE FACTORS INFLUENCING PERCEPTIONS OF VALUE
THE ANALYSIS AND THE ROLE OF THE FACTORS INFLUENCING PERCEPTIONS OF VALUE

Author(s): Adrian Micu, Angela-Eliza Micu
Subject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: decision; pricing; cost

Summary/Abstract: In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting) and managers in charge of satisfying customers (marketing and sales). Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing involves an integration of costs and customer value. To achieve that integration, however, both need to let go of misleading ideas and form a common vision of what drives profitability.

  • Issue Year: 2007
  • Issue No: 1
  • Page Range: 147-152
  • Page Count: 6
  • Language: English
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