Pricing: Concept of Pricing, Factors affecting price of a Product/Service, and Strategies of Pricing
Concept of Pricing The term price means the monetary value to be charged from the customer for a product or service. The decisions related to pricing of a product or service are called price mix . In other words, price mix involves determining the price of the product and establishing policies regarding cash, trade and quantity discount and also credit sales. Price denotes the amount of money for which a product could be exchanged. It is very difficult to define the price of a product. When a person is buying a product, he may buy certain services also along with the product. The more the number of services he wants to get, the higher the price he will pay. A seller prices a combination of the physical product plus several other services and benefits along with the product including warranty, accessories, repair facilities, free home delivery, and credit facilities. The price of the product of a firm constitutes an important element of its marketing mix. It affects the other com
