chapter  16
31 Pages

Pricing strategies: Basic decisions

Price is an integral part of a product – a product cannot exist without a price. It is difficult to think or talk about a product without considering its price. Price is important because it affects demand, and an inverse relationship between the two usually prevails. Price also affects the wider economy because inflation is caused by rapid price increases. Yet among the marketing decision variables, price has received the least attention. “The export-pricing literature is characterized by a distinct lack of sound theoretical and empirical works.”1