Pricing Strategy

Abstract

The pricing decision is one of the most important issues that the marketing executive has to face. Its impact will usually be reflected in the quantity of the product sold, the contribution to profits that the product will make and, even more crucially, the strategic position of the product in the market place. In addition, in a multiproduct company it is frequently the case that a decision taken on the price of one product will have implications for other products in the range. It is not surprising, therefore, that much has been written and discussed on the subject of pricing and that it has created considerable controversy as to how the price decision should be made.