Strategic pricing Possibilities of Grocery Retailers – An empirical study

The right pricing of products is one of the most important issues concerning thedevelopment of companies’ financial performance. Prices should be low enough to attractcustomers and at the same time high enough to cover all the emerged costs and expected profits.This research illustrates how self-organizing maps (SOM) can be used for pricing purposes. Weshow how changes in a company’s pricing policies would affect the company’s pricing position.The study illustrates clearly that companies have different possibilities to change their pricingpositions. The SOM method is new and can be applied in many different ways through differentpricing simulations.