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Pricing: Making Profitable Decisions
By Kent B. Monroe (3rd edn; McGraw-Hill, New York; 2002; ISBN: 0-07-252881-8, 658pp)
This text is aimed at business and vocational study students in higher education as well as practitioners in a wide field of commerce including not-for-profit organisations. It is a substantial reworking of the second edition, which was published in 1990. Monroe has taken particular care in contextualising and analysing the impacts of deregulation and privatisation plus the issues of emergent markets. The structure and coverage of the book make it an excellent core text for courses and also a handy reference book to be kept within easy reach to be dipped into periodically by practitioners.
The objectives of the book have been to cover comprehensively issues and factors that influence price-setting strategies and alternative pricing strategies applicable to a variety of markets. The text considers established as well as emergent markets, and those in decline, where entropic conditions are effectively handled. Each chapter has been clearly set out, using appropriate examples to underline key points and themes with diagrams to support the readers' development and understanding of concepts. Chapter One sets out the thesis of the book with definitions and current pricing practices and the perception of price with a summary broadly outlining the implications for managers. The chapter opens with an appealing Russian proverb as a fundamental caution. There are two fools in any market: one does not charge enough. The other charges too much. The discussion questions sets out a practical problem-solving exercise to underpin concepts developed over the chapter.
Section Two is divided into three subsections where neoclassical economic theories are reviewed, and their limitations highlighted prior to launching into recent important advances in economic theory. Chapter Two develops...