Responsible Pricing

This chapter discussed the concept of responsible pricing and how a responsible pricing strategy creates opportunities for businesses in Sub-Saharan Africa to remain profitable in every sales situation and ensure sustainability. Responsible pricing entails setting appropriate value-based prices for an organisation’s product or service offering in such a way that it is affordable to customers and promotes sustainability for the organisation. By setting the prices in a socially responsible manner, a business enterprise would be able to achieve its core objective of sustainability and customer satisfaction. Responsible pricing is mostly achieved by setting prices based on the perceived value of the product/service from a stakeholders’ point of view, particularly the consumers. By dynamically modifying pricing in line with customers’ perceived value, a business may take efforts to decrease the effect of price sensitivity of consumers, which can positively affect the purchase behaviour of consumers. Businesses that utilise responsible pricing won’t set prices lower than necessary because it gives them information on the customers’ willingness to pay. On the other hand, the setting of prices that result in excessive profits or exploit a customer’s needs is considered to be unethical behaviour and against responsible pricing practices.