What Is Price? What Are Its Determinants

Question

Examlex · Accepted Answer

The Answer is Price is the amount of money paid by a buyer to a seller for a particular product or service.Payment terms are a part of the price.Buyers and sellers know that price can be changed by adjustments in the financial terms or the product characteristics and its bundle of ancillary services.A product can provide value in business markets not only when its invoice price is lower than the competitor's,but when its performance is superior.The fundamental job of the business marketing program is to establish and extend the sphere of benefits or value provided for a "price." Also no item is priced in isolation.Prices for countless items are connected in an exchange economy
Prices are rightly determined by demand factors-price sensitivity,connectedness to other products and customer perceptions-interacting with cost factors and competitive factors in the economic environment.At the same time,we must acknowledge the intersection of market factors with company strategy issues-targeting,positioning,programming and goals-within a marketing environment that is circumscribed by trade factors and legal factors

What Is Price? What Are Its Determinants

Definitions: