Professional Documents
Culture Documents
According to Drury (2014), while discussing pricing strategy argued that cost information
is only one of many variables that must be considered in the pricing decision. The final price that
is selected will depend upon the pricing policy of the company.
However in explaining the importance of pricing, Egbunike (2013) sustained that setting
the price for an organizations product or service is one of the most difficult, due to some number
of variety of factors that must be considered. The primary decision arises in virtually all types of
organization, just to mention but a few of them such as manufacturers set prices for their
products, they manufacture, merchandising companies set prices for their goods, service firms
set prices for such services as insurance policies, bank loans etc.
According to Ehmke et al (2015), marketing your business is about how you position it to
satisfy your customers’ needs. In the face of rapid economic and technological changes, today‘s
consumer is more curious, more educated and conversant with what he/she exactly wants. These
changes also affect the needs of firms.
(Bearden et al 2014) stated that the emphasis will be on price; hence the need to elucidate
more on meaning of price to both customers and firms. Price is the amount a customer pays for a
product or the sum of the values that consumers exchange for the benefits of having or using a
product or service
According to Rosa et al (2014), the importance of price as a purchase stimulus has a key
role in price management since not only does it determine the way prices are perceived and
valued, but it also influences consumer purchase decisions.
Based on Kotler et al, (2016), considering the nature of the consumer products
(frequently purchased and consumed products, implying medium-low level of consumer-supplier
interaction), the basic is, the customers who usually purchase are more frequently in contact with
prices. Pricing strategy is paramount to every organization involved in the production of
consumer goods and services because it gives a cue about the company and its products, a
company does not set a single price but rather a pricing structure that covers different items in its
line.
According to Besanko, Dranove, Shanley, & Schaefer, 2012; De Toni & Mazzon, (2013),
Strategic pricing requires a stronger relationship between marketing and the other sectors of a
company. In order to enhance companies' economic and financial performance, the pricing
policies should be defined by their internal capacities and on the basic systematical
understanding of needs and wishes of their customers, in addition to market conditions such as,
economic conditions and degree of competition.
According to Munroe (2013), pricing a product or service is one of the vital decisions
management makes. Pricing has been viewed as the major pressure point for managerial decision
making hence its importance. Munroe examined the environmental pressures that allowed for an
increased pressure on the importance of pricing. The importance of pricing can be examined with
faster technological progress, proliferation of new products, increased demand for service,
increased global competition, the changing legal environment, and economic uncertainty.
Omar, (2013) stated that Taxation is nonetheless subject to established limitations, such
as those inherent in the power itself or mandated by the constitutional precepts. The Senate
passed Senate Bill 1592, the Tax Reform for Acceleration and Inclusion (TRAIN Law), six
months after its counterpart House Bill 5636 was approved by the House of Representatives last
May (Manila Bulletin, Fred M. Lobo December 5,2017). Taxation is the power by which the
sovereign, thru its legislature, raises revenue to support the necessary expenditures of the
government.
Rondan (2014) stated that studies have shown price as an important factor in purchase
decision, especially for frequently purchased products, affecting choices for store, product and
brand.
According to (Miranda, 2018) the Tax Reform for Acceleration and Inclusion (TRAIN
Law) was said to be designed to improve the number of middle class population. In fact, even
bringing it to the upper middle class level, with the TRAIN Law providing tax cuts for middle
class families, the money what will go to taxes will be freed up in the system through increase
consumption of goods, investment in their children's college education or purchase of necessary
personal items such as appliances or even a second car for their wives. Uniformity of Taxation
means that all the Taxable persons or property of the same class shall be taxed at the uniform or
same rate. There is uniformity in taxation when the tax operates with the same force and effect
on this subject wherever found.
According to GMA News (2018), Rate-Inflation is the rate in which the general level of
prices of goods and services increase.
TRAIN law burdens majority of Filipino families, say study by ASIAN JOURNAL
PRESS (2018), a recent study conducted by the IBON Foundation concluded on Thursday,
October 4, that the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) law
burdens the poorest 17.2 million Filipinos nationwide. The said non-stock and non-profit
organization found out that 76 percent or three out of four Filipino families are struggling to bear
oil and other consumption taxes without the benefit of receiving compensatory personal income
tax cuts. “The poor and middle class, even those few with gains from personal income tax cuts,
will suffer cuts in their standard of living unlike the rich who will easily be able to maintain their
lifestyles,” IBON Foundation said as reported by CNN Philippines. This goes against the claim
of the Department of Finance (DOF) stating that the tax reform is not “anti-poor.” The country’s
finance department claimed that the top 10 percent of richest households consume as much fuel
as the poorest 80 percent combined which is at about 51 percent. In order to lessen the harm that
TRAIN law is causing, several lawmakers have looked into the cancellation of some provisions
in the tax reform program especially those on fuel and oil. However, President Rodrigo Duterte
does not want to stop TRAIN as he does not believe that the tax reform law is responsible for the
price surges.
According to Diokno (2018), In January 01,2018, a new law for taxation has taken effect
in the Philippines namely the Tax Reform for Acceleration and Inclusion (TRAIN) Law. It was
in December 19, 2017 where our President Rodrigo Roa Duterte signed into this law (RA No.
10963). It contains alteration to several provision in the National Tax Code of 1997 on several
tax provisions. These tax provisions include lowering individual income taxation, reducing
exemptions in the Value-Added Tax base, increasing taxes on petroleum products and
Automobiles, and Introducing taxes for Sugar-Sweetened Beverages with the implementation of
the said Law, Filipinos- ordinary citizens, employees, employers, the self-employed, the rich and
the poor were all affected.
According to Jessica Bartolome (2018), The rate in which the CPI changes refers to
inflation. Many factors contribute to the inflation rate. Some of the top contributors of inflation
include the prices of rice, vegetables, meat, electricity, gas, tobacco, among others. As inflation
rises, the value of the peso becomes lower, as people are able to buy less products and services
for the same amount. Prices of rice, energy, and transport specifically were mainly responsible
for the higher-than-expected inflation in August 2018, the Bangko Sentral ng Pilipinas (BSP)
said.