1a. Price should reflect the value that consumers are willing to pay for and not what cost has been spent in making the product. Rajagopal (2013) argues that services should be priced according to the customer price sensitivity. It shows that there is a certain price that the consumers perceive to be appropriate for a certain product.
b. Also, the willingness to buy a product at a certain price portrays the value of the product to the consumer (Buechner, 2011). It means that companies should set a price that coincides with what the consumers look forward to benefit from the product they purchase (Diaz & Crespo, 2013).
2. It is proved that improving customer perception about a company’s commodity increases its sale. Companies should develop their brand awareness as a strategy to win the consumer’s attitude (Pride & Ferrel, 2014). It heightens the knowledge about the products; hence, they are likely to buy the products hence the firm wins against its competitors. It also increases the trust of the consumers to their products and soon, the customers shop specifically for what they have been using for some time. It should also be inclusive of the services the consumer will get like after the sale and in the transaction.
3a. Companies have come up with strategies to improve the quality of their products hence deal with competition from other companies and price their products favorably. For instance, consumers are keen on getting core services and efficient components from a product (Rajagopal, 2013).
b. It means that customers will go for satisfaction, and the cost should be inclusive of the value the consumers get. Companies have to give the consumers what they want to sell at a good price. There are also other qualities that some consumers want from a product, for instance, customers would cherish a hand-crafted fabric rather than those formed through ordinary means.
c. The products will also fetch a higher price if they help in conservation of the environment. Customers are becoming aware of environmental concerns. Such considerations will be important in gaining consumer’s preference.Conclusively, companies have to do more to sell their products. Cost of production is not the only thing that counts but also the appeal to the consumers. They should also market their products creatively to develop the consumers brand awareness.
Buechner, M. N. (2011). Objective economics: How Ayn Rand's philosophy changes everything about economics.
Lanham, Md [etc.: University Press of America.Diaz, V. G.-P., & Crespo, M. A. (2013). After-sales service of engineering industrial assets: A reference framework for warranty management. New York : Springer.
Pride, W. M., & Ferrell, O. C. (2014). Marketing. Australia: South-Western Cengage Learning.
Rajagopal, . (2013). Marketing decision making and the management of pricing: Successful business tools. Hershey, PA: Business Science …