Price Management for Customer Loyalty Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Price management is an essential tool to shift the financial situation of a company towards a profitable outcome. In the MSNBC interview with Bob Prosen, the concept of the methodological price increase was discussed. He claimed that every company could successfully and profitably raise the cost of their products without customer dissatisfaction. Although payment increase causes improved profitability of a firm, it is important to understand that specific conditions need to be present to lessen possible ramifications. During the interview, Bob Prosen shares some key insights and practical approaches that a company can use for its advantage.

Firstly, Bob Prosen emphasizes the importance of keeping the customer informed through open communication. Customer relationship management (CRM) is a critical economic concept, which is exceedingly beneficial for client base expansion. Bob Prosen states that companies should not increase rates without warning the customer. Informing clients in advance will remove possible customer losses (Burkert, Ivens, Henneberg, & Schradi, 2017).

Secondly, Bob Prosen claims that customers should observe improved value with a price increase; therefore, he recommends to promise less and deliver more. These actions are highly relevant to better the level of customer satisfaction (CS). The concept of enhanced CS allows companies to retain existing customers and strengthen brand loyalty (Calfa & Grossmann, 2015). Thirdly, Bob Prosen discussed the importance of tracking the quality of products. The concept of product quality management (PQM) is an essential part of economics and commerce (Bresnen, Hodgson, Bailey, Hyde, & Hassard, 2017). All these systematics approaches will enable companies to improve their price management.

In conclusion, a company needs to possess market power to increase costs successfully. The main factor is market price competitiveness, which is thoroughly sensitive to fluctuations. However, a firm can profitably charge higher, if the product quality will be improved accordingly. Companies with market power generally have better customer relationships and brand image, thus allowing them to manipulate prices more aggressively.

Own Experience: Conflict in the Workplace

Conflicts are regular occurrences that serve as a signaling indicator of a problem within an organization or group of people. Such signals provide an opportunity for managers to undertake necessary measures beforehand. However, workplace conflicts require open communication and a wise approach to solving the existing problem. Therefore, executives need to be highly aware of these issues and they need to systematically monitor current tensions among employees.

My personal experience of working at McDonald’s has given me a perfect illustration of workplace conflict management. The main problems were absenteeism and poor productivity among several employees. However, these problems were the results of ineffective and unproductive management. The underlying cause of the given issues is a supervisor’s leadership style, which hinders the customer’s serving process (Arikan, Reinecke, Spence, & Morrell, 2017).

In my case, the head manager was very involved in every basic activity, which did not require constant monitoring, such as wrapping the burgers. Although being attentive is a positive trait of a leader, the attention should be placed on relevantly important issues. The director’s approach resulted in employees being late and absent in the workplace when he could not arrive. The conflict between workers and an executive was resolved through an open exchange of opinions and thoughts. The result of the given discussion was that the chief director started to effectively supervise important work procedures without distrusting workers on routine tasks.

The given example illustrates the importance of open communication and trust in the workplace. Distrust from a leader will eventually lead to a significant decrease in motivation and team spirit. The tensions among employees and a head manager will not disappear without intervention from both sides. Managing directors should always attentive to possible causes of distress, thus eliminating a potential conflict in advance. Nevertheless, workplace conflict occurrences cannot be fully avoided, and its proper resolution depends on honest discussion and open communication.

References

Arikan, O., Reinecke, J., Spence, C., & Morrell, K. (2017). Signposts or weathervanes? The curious case of corporate social responsibility and conflict minerals. Journal of Business Ethics, 146(3), 469-484.

Bresnen, M., Hodgson, D., Bailey, S., Hyde, P., & Hassard, J. (2017). Mobilizing management knowledge in healthcare: Institutional imperatives and professional and organizational mediating effects. Management Learning, 48(5), 597-614.

Burkert, M., Ivens, B. S., Henneberg, S., & Schradi, P. (2017). Organizing for value appropriation: Configurations and performance outcomes of price management. Industrial Marketing Management, 61(3), 194-209.

Calfa, B. A., & Grossmann, I. E. (2015). Optimal procurement contract selection with price optimization under uncertainty for process networks. Computers & Chemical Engineering, 82(7), 330-343.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, December 2). Price Management for Customer Loyalty. https://ivypanda.com/essays/price-management-for-customer-loyalty/

Work Cited

"Price Management for Customer Loyalty." IvyPanda, 2 Dec. 2020, ivypanda.com/essays/price-management-for-customer-loyalty/.

References

IvyPanda. (2020) 'Price Management for Customer Loyalty'. 2 December.

References

IvyPanda. 2020. "Price Management for Customer Loyalty." December 2, 2020. https://ivypanda.com/essays/price-management-for-customer-loyalty/.

1. IvyPanda. "Price Management for Customer Loyalty." December 2, 2020. https://ivypanda.com/essays/price-management-for-customer-loyalty/.


Bibliography


IvyPanda. "Price Management for Customer Loyalty." December 2, 2020. https://ivypanda.com/essays/price-management-for-customer-loyalty/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1