Price: total bundle of disutilities (costs) given up by consumers in exchange for the product
Pricing considerations include:
- What is the best pricing policy for the product or for the store?
- How will consumers react to Everyday Low Prices or promotional prices?
- Is it more important to have the ‘lowest price’ or prices in the range consumers expect to pay?
- What effect does price reduction or price ending have on perceived quality of product?
- What does pricing policy need to be to maintain a healthy profit margin?