I Different Pricing Objectives Pricing decisions will form a key part of the firm's overall marketing strategy. In this activity, your task is to identify their pricing approach For your answers, choose from the following Objectives: A To increase short-term cash flow B. To maximize profits C. To enhance customer loyalty D. To grow market share/customers - long term E To increase customers - for a short period only F. To support the firm's positioning G. To demonstrate the high quality of their product S. Activity/Task Main Rationale No. Objective When "Great Cuts' (haircuts) originally opened, they charged just $12 per haircut. However, since they have become widespread and more popular, they have progressively increased their price to over $20 2 Flip-flop restaurant has enjoyed a steady flow of A customers, including many repeat ones However, Flip-flop has decided to close in three months' time in order to redevelop the site for apartments, so they have decided to increase the average price of meals from $15 to $25 until the restaurant closes 1. 3 G Mercedes-Benz prefers to maintain high prices, even though they could discount or reduce prices at times 2 3 4 F Flip-flop restaurant has enjoyed a steady flow of A customers, including many repeat ones. However, Flip-flop has decided to close in three months' time in order to redevelop the site for apartments, so they have decided to increase the average price of meals from $15 to $25 until the restaurant closes. Mercedes-Benz prefers to maintain high prices, G even though they could discount or reduce prices at times Most McDonald's stores offer at least one low price menu item targeting children Some supermarkets do not use high low pricing D with discounts but prefer to use everyday low pricing' (EDLP) Some retailer loyalty schemes are expensive to run and only those customers who heavily use the schemes receive any real benefit Large department stores usually have large sales in January. This is designed to clear stock and ensure good sales levels in a traditionally quiet sales month 5 6 7