Pricing is a key area of product and service marketing. Get it right, and you may be successful. Get it wrong and you are out of business. Figure 9.2 communicates the differences between Value-Based and Cost-Basedpricing.
- Why is pricing so critical?
- Clearly define each pricing strategy.
- Why might you choose one over the other?
- Give specific examples of each using a product or service.
- Is lowering the price a good long-term strategy?