Pricing

Jessica Shrewsbury

BUS620 Managerial Marketing

Dr. Little

August 18, 2014

Pricing

Pricing strategies are an important aspect of the marketing mix. Set prices too low and the firm may realize a loss or unsatisfactory profit margin; set prices too high and customers will not purchase the product, instead searching for a cheaper product of equal or greater quality. What if the name brand company realized a legitimate increase in underlying costs? Was the former price actually set too high in an effort to achieve extraordinary profits? Can the company cut its costs without sacrificing product quality or is a price increase necessary to maintain financial health? Customers may choose to pay more for a product if they feel they are receiving a better quality item in comparison...