Question

   Critically review the extent to which a financial services organisation’s pricing strategy might be used to achieve sustainable differential advantage.

Answer 1

Pricing Strategy for Financial companies That create sustainable advantages:

Pricing plays a vital role in all of company's offerings and strategy is the foundation for building pricing that help financial services providers to shape their and meet their competitive advantages.

Using pricing strategy the financial services companies become able to build market share and customer loyalty.

Reason of adopting pricing strategy by financial service companies;-

- To arrange new product infront of customers that must be attractive for them and profitable for company itself , that can be achieved by good pricing settlement.

- Product migration that encourage customers to do various transaction.

- To meet cross sell of products i.e banking products along with insurance products. so pricing strategy is adopted.

- To set price for transaction cost that must be well around flexible for all segment of customers.

We know that pricing is main term associated with marketing mix ( 4p's) for generating revenue and profit for organisation. So for finance company it is in case of cash, treasury management and payment purpose.

By adopting a well structured pricing strategy the financial firm can attract more customers and establish sustainable competitive advantage.