Economy Pricing System: A New Perspective

Abstract

Marin Muzhani

In an Economy Pricing System competitive firms use different pricing and marketing strategies to offer customers a variety of multi-products classified as premium and non-premium. The introduction of premium and non-premium commodities concept is the core of the economy pricing which make the firm survive in a very competitive environment. An important characteristic of an economy pricing is that by using the push-demand-to-customers strategy, reaching the maximum profit, is not the main objective of the firm. The main objective of the firm is to hold the market share by reaching the desired sales target which does not always equal to maximizing profit for every unit sold. It guarantees a net monetary position (NMP) greater than one and a reasonable desired profit which is a key parameter for many firms operating in economy pricing.

JEL Classification: D01, D04, D11, D20, D21, D40, D41, D42, D49, E00, E23, E50, E51, E52, E70

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