3/1/2020 Pricing Strategy
Pricing does not simply represent a figure on a price tag. Price has historically been negotiated
between the seller and the buyer, and has traditionally been a leading determinant in deciding
whether or not to buy. The idea of a single set price developed with the emergence of large
retailers. With the increased use of the internet, customers have more and better access to
pricing information from different sellers, thereby forcing retailers to lower their prices.
Companies have responded by offering distinctive product combinations that sell at a
premium. Branding is crucial with respect to these offers (Kotler & Keller, 2015).
Pricing is complex, and any price changes require extensive research on competitors and
market trends before they can be implemented. Prices inevitably change over time due to
competition, changes in customer preferences, or the appearance of new and better products.
Accordingly, any changes in pricing may substantially affect the ability of the other marketing
mix variables to reflect product positioning in customers’ minds (Marshall & Johnston, 2011).
Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.
Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New York,
3/1/2020 Pricing Strategy
Price, the Only Revenue Generator
Smart Pricing Strategies for the Internet Age: A Primer
The competitive implications of a â€œno-haggleâ€ pricing strategy when others
negotiate: Findings from a natural experiment (http://ezproxy.umuc.edu/login?
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