Price can be defined narrowly as the amount of money charged for a product or service; and it can be defined more broadly as the sum of the values that consumer exchange for the benefits of having and using the product or service."(Kotler & Armstrong, 2012: p.290)
The pricing challenge is to find the price that let the company make a fair profit by getting paid for the customer value it creates.
what is the importance of pricing
--Historically, price has been a major factor affecting buyer choice. --Now price still remains one of the most important elements that determines a firms market share and profitability, although in recent decades non-price factors have gained increasing importance.
--Price is the only element in the marketing mix that produces revenue and the most flexible marketing mix elements.
--Price is the number-one problem facing many marketing executives. Smart managers treat pricing as a key strategic tool for creating and capturing customer value.