Of all the aspects of the marketing mix, price is the one, which creates
sales revenue - all the others are costs. The price of an item is
clearly an important determinant of the value of sales made. In theory,
price is really determined by the discovery of what customers perceive
is the value of the item on sale. Researching consumers' opinions about
pricing is important as it indicates how they value what they are
looking for as well as what they want to pay. An organisation's pricing
policy will vary according to time and circumstances. Crudely speaking,
the value of water in the Lake District will be considerably different
from the value of water in the desert.For more information click here
