Pricing Research Paper Example | Topics and Well Written Essays - 1500 words

Pricing - Research Paper Example This research will begin with the statement that price is the monetary value associated with the product and it is the driver of company revenues.† Charles W. Lamb, Joseph F. Hair and Carl McDaniel believe that price is something â€Å"which is given up in an exchange to acquire a good or service.† Price of a product or service is very important to both seller and customer. Usually, customers see the  price as the cost of product or service, whereas seller considers as the revenue. The logic is simple for the sellers – revenue increases with the increase in price or volume of sales. In reality, price remains vague as all the details related to it are never spelled out. Theoretically, the  price is one of the most important Ps among the four Ps of product marketing. The inclusion of the  price in the marketing mix (four Ps) signifies the importance of it in the world of marketing. The marketing process is incomplete without proper adoption and implementation of pricing strategy. Prices are established in order to cover the costs and make some profit which is the ultimate objective of any company. In other words, it can be said that price is very important because it brings the profit which is crucial for the survival of the company. It is often found that customers’ expectation regarding the quality of the product varies with the price. It is assumed that quality of the product increases with the increase in price. Marketers need to consider such assumption and give proper importance to the price aspect accordingly.