18.104.22.168.1.•The concept of pricePrices were set by negotiation between buyers and sellers throughout the history, sincesetting one price for all customers is a relatively modern practice that arose with thedevelopment of large-scale retailing, because large retailers carried so many items.It is commonly accepted that price could be defined as the «amount of money chargedfor a product or a service». More broadly, the price could be conceptualized as «the sum ofall values that consumers exchange for the benefits of having or using a product or service»(Kotler et al., 2008). Finally, and considering the price as a customer-based variable, pricecan be defined as «the value of the acquisition that a product or service represents for aspecific individual; understanding value as the product itself, plus its utility in time andspace» (Santesmases et al., 2011).Price has operated as the major determinant of the customer choice, and this is still thecase in the low-income developing countries and with commodity products. Even though,non-price factors have become more important in the last decades, price still remains one ofthe most important elements in determining the company profitability and market share(Kotler and Keller, 2006). However, nowadays consumers have more access to priceinformation and often put pressure on retailers to lower their prices. Likewise, distributionintermediaries put pressure on manufacturers, and so on. So, today the marketplace could becharacterized by strong price discounts and sales promotions.The importance of priceFor marketers price has a great importance for the following reasons:The only information available in many purchasing decisions:In many purchasing decisions the consumer has no other product or service informationrather than the price, or does not have the capacity and knowledge to evaluate the technicalcharacteristics of the product, its composition or the objective quality (Santesmases et al.,2011). In this context, consumers examine price information actively, interpreting prices interms of their own knowledge from prior purchasing experiences, formal communicationssuch as advertising or sales brochures, informal communications such as word-of-mouth andpoint-of-sale resources (Ofir and Winer, 2002). Therefore, in the purchasing decision processprice becomes a valuable source of information of the product quality, the prestige of thebrand, the commercial offering and the purchasing opportunity. For example, previousresearch shows that consumers associate a low price with a poor quality, and inversely, theylink a high expensive price with high quality.