According to Kotler and Armstrong (2004), price is the amount of money customers have to pay to obtain the product (p.56). In addition, Reibstein (1985) mentioned that price is the means through which the company recovers its costs and makes a profit (p.325).
Price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive through the value of the item on sale. Consumers are interested in obtaining a “reasonable price”. “Reasonable price” really means “perceived reasonable value” at the time of the transaction (Lamb et al., 2004, p.570). Moreover, Reibstein (1985) indicated that a low price for some items and a very high price on others may represent the price that attracts a sufficient number of buyers so that the seller has incentive to provide it (p.325).