Question

1)How does a company view its prices and the competitor’s prices?

2)What does a lower price mean to the consumer?

Marketing class

Answer 1

1)How does a company view its prices and the competitor’s prices?

Price

Price is the compensation received from the customer for the value of Goods and Services. Price is an important factor in the competitive market, the lowest possible price attracts the customer to purchase goods and services. Competitor Price is the Price charge by the other firm(Competitor) for the product which directly similar to the company product. Competitors charge different prices in comparison with Company Price because of different quality, different technology, the lowest price to increase sales, High Price to become premium Goods and cost of the product.

Reason: company views its prices and the competitor’s prices

• The company views own price as a strategy to face the competitor price.
• The company views own price as a tool to attract market share and challenge competitor price.
• The company wants to understand the cost structure of own as well as competitor cost.
• The company set price after analyzing own cost structure and competitor Price policy
• The company sees own price as a tool to win from the competitor trick.

2)What does a lower price mean to the consumer?

The lowest price is to help attract new customers and retain existing customers. Lowest Price gives different analyses to different customers. Let's understand why the company charges the lowest price.

• The company wants to attract New Customer.
• The company wants to remove the competitor from the market.
• The company wants to increase Market Share.
• The company want to Increase Sale in the market.
• The company wants to finish the old stock.

In short, Price is an important factor for the company for the survival as well as growth for the company, before taking final decisions for price company need to carefully analyze the current market price, competitor policy in the market and company policy relating Product.

All the very best