Price is the amount of money consumers pay to buy a product or service. It is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is an extremely important element of the marketing mix because it ultimately determines how much money a company can earn. The price a company charges for its products also sends a clear message to its target market, for example, Oakley positions its sunglasses as innovative, state-of-the art products that are both high quality and visually appealing.
Price is the amount of money charged for a product or a service; the sum of the values that customers exchange for the benefits of having or using the product or service. Historically, price has been the major factor affecting buyer choice. In recent decades, non price factors have gained increasing importance. However, price still remains one of the most important elements that determine a firm’s market share and profitability.
Price is the exchange value of a product expressed in monetary terms.
Webster Dictionary Meaning
- Value; estimation; excellence; worth.
- Reward; recompense; as, the price of industry.
- To set a price on; to value. See Prize.
- To ask the price of; as, to price eggs.
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