Pricing policy and profitability level of an organisation : Case study Finnair
Collins, Tanyi (2021)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021101918777
https://urn.fi/URN:NBN:fi:amk-2021101918777
Tiivistelmä
The fastest method of increasing profit and ensuring existing companies in the market is getting the price right. Therefore, determining the pricing policy to be used is the essential task of the marketing and finance managers. Furthermore, the pricing policy of their product or service often plays a significant role in determining if an organisation achieves a profitability level. For these reasons, organisations must strive to command the optimal price for their products and services continuously with the changing market demand. Unfortunately, however, most firms or companies still suffer from making wrong pricing decisions, thereby causing the loss of a lot of money to the organisation and profit anticipated, hence experiencing wastage.
This thesis aimed to assess Finnair, the largest airline company in Finland, pricing strategies and how these strategies affect its profitability. The specific objectives were to establish the pricing strategies companies use and evaluate how these companies use pricing as a marketing mix tool to influence profitability. A theoretical framework was developed from various sources with emphasis on current literature from renowned authors in marketing.
The approach adopted for researching this thesis was qualitative research using case study methodology. By making a detailed study of the Finnair airline, only secondary data sources were used as the primary source of material for this report. The research revealed that the effectiveness of pricing policy and price planning has a significant influence on the profitability level of organisations.
This thesis aimed to assess Finnair, the largest airline company in Finland, pricing strategies and how these strategies affect its profitability. The specific objectives were to establish the pricing strategies companies use and evaluate how these companies use pricing as a marketing mix tool to influence profitability. A theoretical framework was developed from various sources with emphasis on current literature from renowned authors in marketing.
The approach adopted for researching this thesis was qualitative research using case study methodology. By making a detailed study of the Finnair airline, only secondary data sources were used as the primary source of material for this report. The research revealed that the effectiveness of pricing policy and price planning has a significant influence on the profitability level of organisations.