Pricing is one of the four pieces of marketing mix. The other three aspects are product, place, promotion. Pricing is the most important and difficult strategy. It directly affects the revenue of a company. If the company price the product too high, no customers would buy it. If the price is low, company would lose money. One of the key terms I found in the "Price the product" chapter is prestige product. Its definition is "products that have a high price and that appeal to status-conscious consumers." It reminds me of some products like Coach purse, Rolls-Royce Car, Balenciaga, Dolce & Gabbana. People who purchase these products think that they will elevate their status and high price is an indiation of superior quality.
No comments:
Post a Comment