Setting the Price
What is Price?
Price is the amount of money charged for a product or service. It represents the value that consumers are willing to exchange for the benefits of owning or using a product or service.
Price is the only marketing mix element that produces revenue.
Determining the right price for a product is a critical decision that impacts a company’s profitability, market share, and competitive positioning. The question of what constitutes the “right price” is important because it directly influences consumer behaviour, brand perception, and the overall success of a product in the marketplace. Setting the right price involves balancing several factors, including production costs, market demand, competitive pricing, and perceived value to the customer.
What is the right price? We explore this question and possible answers in the sections that follow…
Media Attributions
- Figure 1: “The Price is Right (2016-2022)” by Ninai48592525691 (2023), via Wikimedia Commons, is used under a CC0 1.0 license.
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