Wednesday, March 9, 2011

Price

The price for this product could range from $2.99 to about $4.99 depending if its a carpet cleaning product. There is a line of products for both laundry and home care.
"The price steps should take into account cost differences between the products in the line. More importantly, they should account for differences in customer perceptions of the value of different features. For example, Quicken offers an entire line of financial management software, including Basic, Deluxe, Premier, and Home & Business versions priced at $29.99, $59.99,$79.99, and $89.99. Although it costs Quicken no more to produce the CD containing the Premier version than the CD containing the Basic version, many buyers happily pay more to obtain additional Premier features, such as financial planning and investment-monitoring tools. Quicken’s task is to establish perceived value differences that support the price differences." (Marketing an Introduction by Armstrong/Kotler) The price of the product not only reflects the cost to make the product but in reality is paying for what you believe is the valuable and what it can do for you.

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