Price
Price, which is an enduring element of the original Ps of the marketing mix, may generally be perceived in terms of the specific monetary value that a customer attaches to goods and services (Kent & Omar 2003). Farahmand and Chatterjee (2008) conceptualise price within the auspices of the value assigned to something bought, sold or offered for sales, expressed in terms of monetary units. It also pertains to how buyers view a product’s price, as high, low or fair, which ultimately affects consumers’ willingness to buy the product (Ahmad & Vays 2011). Pricing is a crucial strategic variable due to its direct relationship with the company’s goals and its interaction with other marketing mix elements (Yesawich 2004). Pricing enables companies …show more content…
This creates an impression that consumers are paying a lower price for the product, leading to an acceleration of sales (Lamb et al. 2008). The issue of reference pricing also presents manifold challenges to marketers (Abedniya 2011). Reference pricing refers to the price against which consumers compare the listed price of a product or service with the discounted price (Anttila 2004). In this way consumers evaluate whether a price is too low or too high as they make their product choices. When a consumer perceives that a retailer charges high prices for a product, the consumer also perceives that the retailer possesses an air of luxury, which may lead to repeat purchases (Dunne & Lusch 2008; Yesawich 2004). Due to the sensitivity of price to different segments of the market, some retailers have resorted to introducing generic products or house brands to cater for the price-sensitive section of the market (Yelkur 2000). This strategy is premised on the view that for some consumers, high price simply means giving up more resources for the product whereas some consumers perceive that high prices are a signal of better quality and prestige (Jin & Sternquist 2003). Often, marketers are also faced with the predicament of introducing either a fixed price or a discounted price …show more content…
A fixed price offer suggests to a consumer that the price is non-negotiable or will remain constant whenever they decide to purchase the product (Ahmad & Vays 2011; Nagle & Holden 1994). The discounted price system denotes that the price of a product may be reduced marginally as and when necessary to encourage more sales (Leisen & Prosser 2004) whereas the fixed price offer implies that the product is excluded from consumer promotions or price discounts (Boonlertvanich 2009). Overall, it is important for marketers to choose price communication strategies, both at the point of sale and by the means of various media forms, which are capable of drawing consumers’ attention to the product’s value and thus inducing them to buy (Romani 2006). Since price is an important instrument in shaping the performance and ultimate destiny of both the product as well as the company, it is logical to expect a positive and predictive relationship between price and brand
Price, which is an enduring element of the original Ps of the marketing mix, may generally be perceived in terms of the specific monetary value that a customer attaches to goods and services (Kent & Omar 2003). Farahmand and Chatterjee (2008) conceptualise price within the auspices of the value assigned to something bought, sold or offered for sales, expressed in terms of monetary units. It also pertains to how buyers view a product’s price, as high, low or fair, which ultimately affects consumers’ willingness to buy the product (Ahmad & Vays 2011). Pricing is a crucial strategic variable due to its direct relationship with the company’s goals and its interaction with other marketing mix elements (Yesawich 2004). Pricing enables companies …show more content…
This creates an impression that consumers are paying a lower price for the product, leading to an acceleration of sales (Lamb et al. 2008). The issue of reference pricing also presents manifold challenges to marketers (Abedniya 2011). Reference pricing refers to the price against which consumers compare the listed price of a product or service with the discounted price (Anttila 2004). In this way consumers evaluate whether a price is too low or too high as they make their product choices. When a consumer perceives that a retailer charges high prices for a product, the consumer also perceives that the retailer possesses an air of luxury, which may lead to repeat purchases (Dunne & Lusch 2008; Yesawich 2004). Due to the sensitivity of price to different segments of the market, some retailers have resorted to introducing generic products or house brands to cater for the price-sensitive section of the market (Yelkur 2000). This strategy is premised on the view that for some consumers, high price simply means giving up more resources for the product whereas some consumers perceive that high prices are a signal of better quality and prestige (Jin & Sternquist 2003). Often, marketers are also faced with the predicament of introducing either a fixed price or a discounted price …show more content…
A fixed price offer suggests to a consumer that the price is non-negotiable or will remain constant whenever they decide to purchase the product (Ahmad & Vays 2011; Nagle & Holden 1994). The discounted price system denotes that the price of a product may be reduced marginally as and when necessary to encourage more sales (Leisen & Prosser 2004) whereas the fixed price offer implies that the product is excluded from consumer promotions or price discounts (Boonlertvanich 2009). Overall, it is important for marketers to choose price communication strategies, both at the point of sale and by the means of various media forms, which are capable of drawing consumers’ attention to the product’s value and thus inducing them to buy (Romani 2006). Since price is an important instrument in shaping the performance and ultimate destiny of both the product as well as the company, it is logical to expect a positive and predictive relationship between price and brand