Answer the following questions using 3-5 sentences.

If your answer is cited on sources like

books or the internet, indicate your source(s) in APA format.

1. Is pricing a short-term or long-term decision of an entity? Why?

- I think that the organization adopts both short and long term decision in pricing depending on
its objective based on Dhillon (2016), ABC of Marketing. In the short run, most of the time the
main objective is to survive in the market which has intense competition or changes in
consumer preferences. Adding value to the brand generally comes under long term decision in
pricing. Price should be used as a strategic tool rather than it being determined by costs and
markets. (Dhillon 2016)

2. What are the factors and major considerations to be considered in coming up with a sound
pricing policy?
A systematic approach to pricing requires the decision that an individual pricing situation be
generalised and codified into policy cover¬age of all the principal pricing problems. The pricing
factors are, Cost Data, Demand Factor, Consumer Psychology, Competition, and Profit.
Meanwhile, the Considerations involved in formulating the Pricing Policy are, Competitive
Situation, Goal or Profit and Sales, Long Range Welfare of the Firm, Flexibility, Government
Policy, Overall goals of Business, Price Sensitivity, and Routinisation of Pricing (Chand 2015).