Product/market strategy level. The primary issue at this second level is pricing a product or service relative to the competition. To do so, companies must understand how customers perceive all offerings on the market and, most particularly, which attributes—product as well as service and intangible attributes—drive purchase decisions. With this knowledge, companies can set visible list prices that accurately reflect the competitive strengths (or weaknesses) of their offerings. - See more at: http://131.253.14.125/proxy.ashx?h=hf69pr_kaAOVnt_qAfOy2L86XDw1yFEn&a=http%3A%2F%2Fwww.mckinsey.com%2Finsights%2Fmarketing_sales%2Fthe_power_of_pricing#sthash.phLhUp3T.dpuf