ABSTRACT

No decision worries a marketing manager more than determining the appropriate price to charge customers because, for most product categories, price is the marketing variable customers react to more than any other. Price is an observable component of the product that results in a consumer purchasing or not, and at the same time, it directly affects margin per unit sold. Other components of the marketing mix are important, of course, because they must work together to create a unified brand image and produce sales. However, price most often makes or breaks the transaction.