Marketing: Selecting the Final Price

While selecting the final price, the company has to select some additional factors such as:-

Psychological Pricing: Sellers should consider the psychology of prices in addition to their economies. Many consumers use price as an indicator of quality. Image pricing is especially effective with ego-sensitive products such as perfumes and expensive cars.

The influence of others Marketing-mix elements on Price: The Final price must take into account the brander’s quality and advertising relative to competition. Brands with average relative high quality but high relative advertising budgets able to charge premium price, consumers are willing to pay higher prices for know products than for unknown products.