The Finnish Journal of Business Economics 3/1972, 190-199.
Pricing of products is one of the many problems in a firm. It is
affected by numerous factors. The purpose of this article is to
systematize these factors. Their relative importance varies
considerably in different cases. The question of the relative
importance is, however, omitted.
The approach to pricing can be descriptive or normative, or it can
be based on price theory. The approach to be used here is mostly
descriptive.
In this article the factors affecting pricing are classified in four
main groups. The items in each group are considered briefly.
The need for a further development of an operations research approach (a part of the normative approach) to pricing is noted. This applies to both modelling and finding effective solution procedures.