Pricing Objectives and Strategies Retail Price: An Empirical Analysis São Paulo Retail

Abstract

In retail, managers have a delicate and complex task in formulating their pricing strategies considering the multiple products and services available. While the price targets provide an overall direction for action, the pricing strategies are the steps or procedures by which organizations achieve their pricing decisions. The scope of this paper is to explore the goals of prices that retailers are seeking along with the strategies they adopt to price their products and services and investigate whether price targets are associated with the pricing strategies adopted. To meet the objectives of this study, we chose to conduct a search using a quantitative-descriptive survey. The sample is not probabilistic and to the advantage of the researchers. It consists of 300 retail companies of all sizes located in São Paulo city. As a result it was found that the sample companies are pursuing goals primarily quantitative rather than qualitative, with a strong emphasis on making sales and profits followed by the market development for the organization. Another important point in the discussion of strategies within retail firms in the sample seems to give less attention to a customer-oriented method. These companies most often employ the traditional costs, probably due to the simplicity of this method.