COMM 223 Chapter Notes - Chapter 11: Target Costing, Pricing Strategies, Fixed Cost
7 Apr 2017
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Price the amount of money charged for a product or service this is the money that"s exchanged. This is the sum of all the values that consumers exchange for the benefits of having or using a product or service. It seems as though most companies look for a way to cut prices in the face of competition and economic conditions. But cutting prices isn"t always the best answer. It can lead to lost profits and damaging price wars. It can also cheapen a brand by signaling to customers that price is more important that the customer value that a brand delivers. Price is the only element in the marketing mix that produces revenue it"s also the most flexible. Prices can change quickly, unlike product features and channel commitments. The price that a company charges will fall between one that"s too high to produce any demand and one that"s too low to produce a profit.
