Discussion Help 3

Pricing decisions can be among the most challenging tasks for a marketer. Setting price seems to be part art, part science. A fundamental pricing idea is that value is in the eye of the beholder (or more specifically, the mind of the buyer). 

One way that consumers evaluate price is to compare a product’s price. Marketing expert Sean D’Souza says evaluation of product price without anything else to compare to does not communicate value. Price judgments are not made in a vacuum but rather in reference to other prices.

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In the article “Do Lower Prices Lead to More Sales”, Sean D’Souza answers his headline with an emphatic “no.” His solution is for a business to develop a product line that has offerings at different price points, creating comparisons across your products rather than comparing with competing products or there being no comparison at all (pricing in a vaccum).

  • Take a stance either for or against D’Souza’s call for developing a product line with different price points. Is this the most effective way to communicate product value via the price element of the marketing mix?

 

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