When establishing the image of a company, pricing is one aspect that correlates to a company’s image – aligning the company with a reputation of bargains, exclusivity, quality, and/or prestige appeals within a market segment affecting consumer behavior (Scarborough & Cornwall, 2015). Remaining abreast of competition provides awareness of any trends of variations in the pricing mix; it can serve as a baseline for determining the current price of a product or service to be sold.

One example in the text book describes local drug stores competing against large national drug chains – to offset the lowered prices offered, the local business can offer services that are not prevalent in chains such as free delivery, credit sales, and personal.

Examining the relationship between price, image, and competition is important for new products and services when comprehending the marketing mix and establish its reputation to successfully thrive in the market – aiming at consistent sales, attracting and retaining customers, and keeping the brand name reputable. Reevaluating the same criteria is pertinent for existing products/services to remain relevant in the market, maintain its customer base (loyal customer) and longevity

Joy

Pricing is important for new products and services because it can either improve or damage the company's profitability. Pricing can eitherdraw your customers to you or drive your customers away from you. For example, When I was pregnant I went inside the materity clothing store to look for a couple of outfits for the remaining months. I looked at one price tag, turned around and walked out of the store. I guess I should have expected that but I didnt think it would cost that much for temporary wear, however it is a demand for the time being. Its important for existing products and services because the customers perception and expectations about value has changed. So they spend what they want and if they cant get it from one company, they will go to another company. Some strategies for pricing is communicate with customers, rather than raise the good or service, include a surcharge and consider absorbing raw material cost increases to keep customerswith long term importance to the company. Price is use to enhance the image of their brands. In the book it states, "That some companies emphasize low prices, but others establish high prices to convey image of quality, exclusivity, and presitge, all of which appeal to a particular market segment. Skimming is a pricing strategy to introduce a new product or service into a market with little or no competition or to establish a product or service as unique and superior to those of its competitors. Life cycle pricing is a variation of the skimming pricing strategy.

Ebony

Good evening class,