How Pricing Effect Sales?

Abstract

From the perspective of a customer, price always represents the product’s value. Most of the time, customer’s perception of the product value may not necessarily be in line with its price. There are instances in which the product is overpriced when its value perception is lower than the price tag on it, and vice-versa. For a marketer, it is important that products are priced at the right level. Last but not least, the product differentiation is getting blunted. The differentiation among firms on the basis of the product is going to get blunted when technologies get standardized. More products and brands will transcend to a commodity situation. This is an unhealthy sign as commodities are always subject to price fluctuations and price wars. Obviously, at this stage, the only way to differentiate between brands is the price.