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Paper Details

IMPROVEMENT OF PRICE FORMATION MECHANISM IN PUBLIC EATING ESTABLISHMENTS

IMPROVEMENT OF PRICE FORMATION MECHANISM IN PUBLIC EATING ESTABLISHMENTS

Sergiu PETROVICI

Journal Title:Journal of Research on Trade, Management and Economic Development (JRTMED)
Abstract


The author proposes a new mechanism of price formation in public eating establishments, which represents a combination of goods and services: a) food preparation, b) sale of goods, c) organization of consumption. Since public eating establishments represent an activity which combines the production with services, the author suggests keeping separate accounting of production and circulation costs. This is only the initial phase of price formation mechanism in public eating establishments. The next phase is to establish the resulted price, which includes the associated discounts depending on consumers’ demand for cooked dishes and marketing actions to serve customers. The author concludes that the price formation mechanism cannot be based on the calculation of cost of goods plus the bonus of trader, but this process should be adjusted through the marketing approach based on consideration of factors (behavioral, visual, indirect etc.) which influence the customers’ behavior.

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