Are the pricing strategies of a firm long term or short term based? Explain.

Are the pricing strategies of a firm long term or short term based? Explain.

Depending upon the volume of profits that a company has targeted,its pricing strategy maybe short or long term based. Where a company has invested heavily on research and development of the product and its promotion, short term pricing strategy may be followed initially in order to recover the cost of investment speedily, thereafter it may convert its pricing strategy to a long term one to sustain its business operations. For example a product may be sold at premium price initially and gradually its price maybe lowered once it has captured sufficient market demand.