Pricing Strategies

A customer’s response to an offering from a supplier is affected by all aspects of the marketing mix which constitutes that offer. Amongst these variables, price is always an important feature since it is one of the determinants of a product’s value. Price is thus one of the evaluative criteria utilised by potential customers, as are the costs which will be incurred in both making the purchase and owning or utilising the product. Price and associated costs are, therefore, an important adjunct to positioning.