Business Objectives and Pricing Strategies

In this short revision video we look at a range of business objectives and how they affect the price that might be charged to consumers.

Key revision points:

• Objectives often driven by managerial motives
• Interdependent behaviour in an oligopoly - firms must consider the likely reactions of rivals
• Most businesses are satisficers rather than maximisers
• Regulatory interventions do matter e.g. price capping
• More firms now use big data to drive revenues
• Consumers are increasingly sensitive to issues surrounding fair / ethical pricing