Price Determination And Pricing Strategies
Pricing is the process that sets the final amount to be charged from a prospective buyer in return for a particular product or service. A large number of factors are taken into consideration while formulating the pricing strategy. The influences and constraints in setting the final price include product characteristics and external environmental factors. The objectives of pricing include profit maximization and sustenance of competitive advantage in the market. These objectives govern the final price that is set. The paper examines various issues involved in the final price determination and discusses the pricing strategies.