Depending upon firm strategies the two different theories in which can be pursued is either generated in the human resources area or in the marketing area. Depending on the strategy there may be an issue to be addressed that gave rise in employing these theories, how the theory being followed leads to specific actions on the part of the company, and or different results achieved depending on the strategy.
Each and every firm has had and or plans on implementing a penetrating pricing strategy in order to achieve a certain goal. Depending upon which strategy to implement will result in various means and needs to be evaluated from step one with the proper management throughout the cycle of the strategy. The two different theories that a firm may implement are in the human resource area, moving toward an employee empowerment culture or in the marketing area, the theory of penetrating prices. Penetrating pricing isn’t new to the retail marketing at all. This has been a technique that which has been used by several different firms’ amongst the years of operation. This technique is a means to offer goods and or services at a much lower rate than its competitors to grow and to establish a customer base as a firm’s foundation for now and the future (Griffin, 2013). The pricing of goods and or services stays at a low for a length period of time in order to find the reviews of customers to ensure the demand and desire of these goods and or services and once that is recognized then the prices will rise and the wholesaler and the customers can begin in negotiating a higher price with its newly established customer base. Penetrating pricing also known as the hook and bait strategy has different strategies in doing so. Wal-Mart and USAA Insurance both use the penetrating pricing to lock down a stable customer base but in the human resource area, moving toward an employee empowerment culture they...
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