Advantages Of Pricing In Marketing

When it comes to pricing we always strived to provide one of the lowest prices in the market. We decreased product prices by $0.50 on each product each year to appeal to consumers. Since providing a low cost product was one of our strategic goals we did not stray from decreasing prices. Looking back, perhaps we shouldn’t have been so loyal to our strategy when we were unable to turn a profit. While a strategy is important to stick to, being a profitable company is the ultimate goal.

Penetration pricing may negatively impact brand image and product positioning in the long run because it may give a brand a negative image of being cheap. The opposite effect of what was intended may occur and even though the product can be bought for less, consumers may think the quality is less because of that; along with that comes a decline in value proposition as well.

market, there is price competition. This can lead to price wars and, therefore, lower prices for

Price - is the amount of money expected, required, or given in payment for something (Business Dictionary, 2014).

Prices in a market economy are very important. Price allows us to give out goods appropriately to those who are able to pay.

Price is the cash expenditure plus taxes that consumers have to pay for a good or service.

Pricing is a relevant issue in procurement at all levels. Individuals purchasing the commodities of an organization should receive clarity on pricing. There is confusion in this

First of all, penetration pricing is the major determinant of the price and that is employed when the product managers have to give most of the value to the customers and keeps a small margin. Chatime decided use penetration pricing where set a lower price of milk tea than the eventual market price to attract

Price wars are always inevitable with many competitors in one market. In order to escape price wars, you have to design a vastly superior product or look for markets that haven’t been attacked yet. Both require significant investment, but moving into an entirely new market or technology can be vastly more expensive, and therefore risky. If you’re lucky, competition doesn’t follow you and you can have the majority of the market for

However, there are several factors for the company to choose its pricing strategy. In this case, it may be better if the company choose to sell its product at $21.50 instead of $15.50. This is due to the fact that price-cutting appears to be not a good strategy in this industry. If every player in the same industry starts to lower the price of their products, every company will end up having the low price, which in turns lead to a low profit margin. Moreover, referring to the calculation in a below table, it also implies that if the price is lower than $12, sales will not be able to cover the variable cost incurred, thus it will bring about a loss in net profit.

Although they are able to somewhat control prices due to their product differentiations and their status as a brand name, they will make profits by lowering price. However the danger in lowering prices is that with each additional product, utility will drop for the consumer. Therefore, firms must be careful in balancing consumer demand with the projected consumer utility.

The price that we pay is the value that we associate to any product, whether it is a good or service. It is the compensation given to a person or authority to purchase an object or service. The greater the value associated to the product, the greater the price.

Price is the assignment of value of a product or service. Not only paid with currency, but in multiple manners these could consist of digital money such as the “bitcoin”. The bit coin has merged in to financial market and many firms are starting to use this type of virtual currency. These currencies cannot be controlled by one party (government) that is why it has been such a controversial issue.

More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services that are being offered in the market.

Once the consumers like the product and realizes it is good quality, then they accept the product and the low pricing help the product create some buzz in the market and have some good techniques.