Question

There are many pricing issues. Why pricing is important? What are the pricing issues that concern consumers? What are the pricing issues that concern marketers?

Answer 1

For a business, its Pricing strategy is vital to optimizing both sales volume and profits. Price is one of the most important ways in which customers choose between different products and services, and knowing the optimum price that businesses should charge to maximize sales and profits to have market dominance.

The pricing gives the first impression to the consumers so it’s of vital importance.

· The price and perceived value for the product or services are key to make the buying decision.

· The pricing objectives are made keeping in mind the consumers of a market since the users need to pay a certain amount to get something that they need which is a market competition component for the business.

· The pricing makes the consumers choose the product or look for substitutes or even go for alternatives. Hence the pricing that is applicable for the consumer’s interest is of great importance.

The issues about pricing have many effects on marketing like:

· The competitors pricing is one issue that the marketing has to follow to be competent in the market in the context of price,

· The pricing decides the demography of the product usage or the people who are willing to pay for the product to have a competitive edge in the market,

· The volume of sales is dependent on the pricing which is also important for marketing,

· The pricing is the tool of market expansion and also create loyalty among the users with a good pricing strategy by marketing.

· Last but the most important aspect of marketing is to sell and give the business the profits for its expenses which is thus based on pricing.