On the Relationship between Financial Measures and Contractor Pricing Strategy: Empirical Studies in the Defense Aerospace Industry

Abstract

This report includes two separate but related empirical studies of the relationship between financial measures for defense aerospace contractors and pricing strategies adopted by contractors. Two pricing strategies are identified: skimming and penetration. Collectively the findings indicate that the adoption of a particular pricing strategy is associated with the financial condition of the contractor as reflected in measures of risk, asset utilization and organizational slack. Keywords: Financial ratios; Hypothesis; Correlation; Multiple; Regression tests; Price reduction; Organizational Decision making; Variables.)

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1987
Accession Number
ADA187770

Entities

People

  • O. D. Moses

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Aerospace Industry
  • Aircrafts
  • Capital Investments
  • Commerce
  • Contractors
  • Cost Reductions
  • Factor Analysis
  • Governments
  • Human Behavior
  • Investments
  • Money
  • Procurement
  • Recognition
  • Resource Management
  • Small Business
  • Weapon Systems

Readers

  • Defense Acquisition Program Management
  • Economics
  • Regression Analysis.

Technology Areas

  • Space