Pricing objectives are divided into three categories which include profit oriented, sales and status quo. Pricing objectives of a firm often reflects the reality of the market. Pricing objectives are not always used to increase the profit of the firm. Sometimes a firm maintains the price to retain the position which is relative to the competition. This form of pricing objective is termed as status quo. When it comes to the basic law of supply and demand it does influences the pricing strategy. Although the inverse relationship between the price and demand is understood and well known, it is often seen on the perspective of supply side which means that the relationship between price and demand is usually seen from the marketer’s perspective.
Another important issue with regards to supply and demand is the expectation of the customers with respect to price. The customers often tend to have expectation when they purchase a product but in some case the customer expectation about price can be the driving force used in the pricing strategy. According to the situation demand, a marketer sets prices which are in accordance with what the market would pay irrespective of the cost, competition and other factors which affect the pricing strategy (Ferrell & Hartline, 2010, p. 236).
Easy jet Fares Easy Jet is one of the leading airlines in Europe which operates on over 580 routes and across 30 countries and with a fleet of over 200 aircrafts. Easy Jet holds the number one position in Milan, Geneva and Gatwick and holds the second position in Paris and carries about 300 million people (Easy Jet Plc, n.d).
The prices of a one week return ticket from London (Luton) to Madrid for each of the following departure times: Leaving tomorrow: Assuming the date of tomorrow to be 1 March 2012, the rate on 1st March 2012 is £68.99 Leaving in one week time: Assuming the date on return after a week time being 7 March 2012, the rate on that particular date is £36.99 Leaving in 1 month time: Assuming one month being 1 April 2012, the price on that date is £82.99 Leaving in three months time: Assuming the three month will come to 1 June 2012 stood at £82.99.
But on the same date departure during the noon priced a little higher than the departure in the morning. Flight which was to depart on 13:00 was priced at £92.99 (Easy Jet, n.d). The following is the rate along with the date of Easy Jet Airlines Figure 1: Rates of Easy Jet The above figure which represents the rates of esay jet as per the dates given i. e afte a week, a month and after three months.
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