Tiered pricing airlines and pharmaceuticals

Tiered pricing airlines and pharmaceuticals Introduction Most industries and companies change pricing strategies in a volatile manner depending on various marketing environmental factors. Ideally, companies’ pricing strategies are much influenced by the desire to increase corporate profits and cover operating and other costs (Thomas Maurice, 2010). One of the commonest pricing strategies is the differential pricing strategy or the tiered pricing approach.Advertising We will write a custom essay sample on Tiered pricing airlines and pharmaceuticals specifically for you for only $16.05 $11/page Learn More Pharmaceutical and airline firms are examples of industries that adopt tiered pricing techniques to share costs among their customers. These firms can drastically change prices in a span of days, moments through differential price sharing methods. According to Thomas Maurice (2010) the strategy is based on the notion that customers must not be treated equally, and that firms need to put some e fforts on products. Rather than selling products to all customers in similar approaches, a firm tries to classify and categorize its customer in groups and charge different prices to different groups. Tiered pricing behavior of pharmaceutical and airline firms Today’s marketing research has primarily focused on the pricing policies and strategies by the organizations. Most researches indicate that organization pricing policies are set based on; existence of price tiers, face value pricing, and discount/ premium variation pricing policy. Pharmaceutical and airline firms’ products are good examples where this strategy is prevalent and as a profit maximizing technique (Moe fader, 2008). According to Moe and fader, 2008, tiered pricing is mostly influenced by the ideology of advance purchasing of products by the customers. They added that, firms in pharmaceutical and airline industries customers provide advance information pertaining to the overall demand, diffusion acros s consumers and the demand elasticity of their products forcing a more elaborated marketing efforts to differentiate prices accordingly. For example, airline firms adopt a multi pricing discrimination practice which essentially involves variation of prices dramatically based on timing or hours of purchases. Airlines purchasing in advance by customers also perfect airline price tiers. Pharmaceutical firms’ price tiers are based on medicine quality and better services depending on the income levels or the individual status in an economy.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Yadav, 2010 argue that, price tiers in the medicine and health fraternity is faced with challenging factors on offering quality health provision in most developing countries. In fact, the industry is much cautions in differentiating its prices. In addition, price differentiation in pharmaceutica l firms adds another advantage in maximizing profits. For example, variation on pharmaceutical products depends on incomes of the customer group. Yadav, 2010, further states that, pricing strategies in pharmaceutical companies its challenging firm’s growth and the success in improving access in low and middle earners. Essentially, recent trends shows that firms in pharmaceutical and airline industries pay much attention to price tiers since its differential is based on economic and demographic characteristics of the target consumers. Strategically, these industries utilize differential pricing to create more opportunities to serve the minor or the low income categories and still maximizing profits and developing economies of scale to maximize profits. Again, since the industries are socially responsible demanding, tiered pricing enable airlines and pharmaceutical firms to portray and advocate for social responsibility and not enhancing profit maximization. To reinforce the di fferential pricing techniques, industries like airline or hotels engages in yield management. The concept refers to situations where firms or industries group customers to facilitate differentiating prices of its products (Shumsky Netessine, 2002). Industries practicing this concept are characterized by; expensive storing of products, future demands are uncertain, markets can be segmented, the same products can be perceived differently by customers, and suppliers in the industry are profit oriented. For example, airline industry can group customers into leisure travellers and business travellers. Similarly, a firm can offer discounted prices and full price to the groups to further segment markets. All these pricing techniques and market segmentation support price differentiation to the same product offering same satisfaction capacity (Shumsky Netessine, 2002).Advertising We will write a custom essay sample on Tiered pricing airlines and pharmaceuticals specifically for you for only $16.05 $11/page Learn More Conclusion Differential pricing strategies depend on three tiers in the pharmaceutical and airline industry. These ties include class pricing, bulk selling and selling products based on the willingness to pay. According to the strategy, companies believe that they can increase profits by acknowledging that consumers vary in terms of preferences and lifestyle, tastes, behaviors, income level, and response to marketing mix or geographical categories. In addition, differential pricing benefit firms to target certain groups of customers such as frequent customers and loyal customers. In such a case, no fixed price is set for the industrial products and the major goal is to maximize profits via sharing expenses in selling products to all customers. References Moe, W. W. Fader, P. S. (2008). The Role of Price Tiers in Advance Purchasing of Event Tickets. Web. Shumsky, F Netessine, S. (2002). Yield Management. Web. Thomas C. Maurice , S. C. (2010). Managerial Economics. New York: McGraw-Hill Higher Education. Yadav, P. (2010). Differential Pricing for Pharmaceuticals. Review of current knowledge, new findings and ideas for action. Zaragoza Logistics Center: SPAIN MIT-Zaragoza International Logistics Program.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More

How to Talk About Failure in a Job Interview

How to Talk About Failure in a Job Interview When you’re putting together your resume and getting ready for an interview, you focus on making yourself look as perfect as possible. This is not a process where you want to let self-doubt and self-esteem issues creep in. Yet all that positive thinking and prep can be undone by one or two little questions in an interview. â€Å"Where could you use some improvement?† Or, â€Å"Can you tell me about a time when you failed.† After positioning yourself as kind of an uber-candidate, this can be a tricky navigation. You want to show an appropriate amount of honesty and humility, but who likes reliving past failures, let alone disclosing them to a potential employer? There are ways to do it that can help you get past these spots, without derailing your image as a confident, competent interviewee. Here are some things to consider when you talk about failure in a job interview.DO take it seriously.â€Å"I’m addicted to Mountain Dew† is not the way to go her e. The interviewer is trying to get a sense of your level of self-awareness, and whether or not there are any red flags or major gaps.DON’T use a clichà ©d comeback.â€Å"I care too much.† â€Å"I work too hard.† â€Å"I am too dedicated to my job.† The interviewer isn’t looking for a beauty pageant answer†¦he or she is looking for someone who can be frank about shortcomings, and self-aware enough to try to overcome them. Backdoor bragging that tries to show that you’re just too well-liked or too diligent at work will most likely earn you an eye roll.DO be honest†¦It’s okay to admit you’re not perfect. This is one question in an interview that is 99% about your accomplishments and qualifications, so approach it honestly and candidly. The interviewer will appreciate your candidness.†¦But DON’T treat it like a confession.This is not the time to list all of your drawbacks. (Unless you’re applying for the CIA, in which case you might as well be honest, because they will find out.) Ahead of time, think about one or two areas where you know you need improvement, and make sure they’re not red flag-worthy. For example, if you’re not great with numbers, don’t answer the question with, â€Å"I suck at math.† Basically, anything that makes you seem â€Å"bad† at something is not the right choice here.DO perform the spin-pivot move.Whatever you do go with, make sure you use it to emphasize strengths you do have. With the bad-at-math example, you can emphasize that you prefer creative problem solving to hard-and-fast numbers. Frame it as a choice between A (weakness) and B (strength), and talk about how you’d choose B.DON’T use anything in the basic job description as your weakness.If you despise being around kids, and are applying for an elementary school position, well- what are you doing there? But more importantly, if you’re aske d about an area where you could improve, mention that you’re always looking to improve your ability to relate to students.DO emphasize that you’re a work in progress.Part of what an interviewer is trying to assess is your growth potential. When you talk about any challenges or areas of improvement you have, be sure to say that you’re aware of your limitations in X area, and that you’re constantly seeking to be better/more efficient/stronger.DO avoid using words like â€Å"weakness,† even if the interviewer uses it first.Instead, frame it as a challenge, or avoid using negative nouns altogether.Getting past this moment in an interview can be awkward, but if you do some thinking ahead of time about your challenges and how you plan to turn those into strengths, you should be back in safe, â€Å"I’m awesome† territory in no time.