Activity-Based Pricing Boosts Competitive Advantage and Profitability
The article "Pricing for Profitability: Activity-Based Pricing for Competitive Advantage" discusses how businesses can set prices to make more money. It looks at how demand for products affects pricing, and how companies can use pricing to compete with others. The researchers talk about different pricing strategies and how costs play a role in setting prices. They introduce a method called Activity-Based Costing to help companies figure out how much to charge for their products. By using this method, companies can set prices based on how much they use their resources. The article also talks about how companies can negotiate prices with customers and summarizes the key points at the end.