What Is Price

Topics: Marketing, Pricing, Consumer theory Pages: 3 (956 words) Published: December 9, 2012
# What is price?

The answer depends upon whether the concept is viewed from the market place or from the stand point of costs. Consumers view price as a monetary expression of the value for dimensions of quality or features benefits for a given products or services. This relationships can be expressed as follows:

Price = Quality
In other words , Price is the payment for quality as interpreted by the valuation of the marketplace. From a psychological standpoint , price represents a quantitative estimate and or subjective image of the benefits from a selective group of product features for a good or service. As such psychological prices serve as expected prices or references points in purchasing products. Pricing Stategies:

Price a an integral part of the marketing mix will contribute to the attainment of marketing objectives, which in turn are derived from objectives set forth for the farm as a whole .Focusing on gaining a competitive advantage , marketing management analysis the situation , sets specific functional objectives and formulation strategies or ways of achieving these objectives . The decision confronting a marketing is , what pricing strategy is appropriate , indeed necessary , under different environmental condition to reach a given objectives ? Development of rules such as following can be help in formulating specific pricing strategies;

1. Scale : Does the size of purchases merit pricing separately for individual customers ? 2. Customers knowledge : Are customers able to evaluate the value of a product in taka and recognize differences between price levels. 3. Demand : Does price play an important role in consumer pricing decisions ? 4. Information : Can a marketer accurately determine price/value evaluations and levels of demand? 5. Competitive substitute : Are their other products in the category that provide relatively close substitutes against...
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