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Respond Through Pricing Week 5

Respond Through Pricing Week 5 - Respond Through Pricing...

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Respond Through Pricing Price Demand Curve and Elasticity Final Price Marketing Financial Analysis Study Tools Price Price is a critical component of the four Ps. One reason is that price is so wrapped up in our image of a product. Let’s take two hair brushes you might see at your local retailer. One is priced at $3.95 and the other is priced at $.63. For the life of you, there doesn’t seem to be any apparent difference beyond the packaging. Whether or not the two brushes are the same is not the issue. The important point to consider is that you think that the higher priced brush is of a higher quality. Believe it or not, the majority of consumers will choose the more expensive brush because they assume it's of a higher quality. This is one example of how price can be used to position the product in the consumer’s mind. As a matter of fact, price often has no relationship to the cost of production. Instead, price is often adjusted to the consumer’s perceived value. This simply means that a consumer perceives that a product or product category is worth a certain amount of
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