Price Policies, Over-Supply and Demand Bubbles

In the current conditions of over-supply, firms are paying high attention to pricing decisions in order to defend their competitive positioning. Modern pricing strategies are able to take into account changed market conditions or, in other words, demand characterised by strong volatility and non loyal behaviour flanking known loyalty mechanisms. Moreover, suppliers are also looking for innovative formulas to determine the exchange relationship with the customer and price is increasingly seen as a 'catalyser' of continuously changing offers in relation to market conditions (demand bubble).