Question

As a market manager for a company, contemplate whether prices should reflect the value the customers are willing to pay or whether they should be based upon the cost of the product or service to your company. How would you support this with an example of your product or service to substantiate your position? Your journal entry must be at least 200 words. No references or citations are necessary.

Answer 1

As a market manager for a company I am at the position that prices should reflect the value the customers are willing to pay.

This is on the grounds that customers are not willing to simply pay for the items, they are happy to pay for the worth they can acquire from the items as far as an items inherent benefits and prestige. Customers are happy to address a greater expense for items they see to be of high worth and a lower value cost for items they see to be of low worth. A company ought to guarantee that the costs for their items line up with the worth the customers attach to these items.

Furthermore, customers are happy to address greater expenses for excellent items. Customers perceived quality about company's product should shape the pricing decisions by the company. Customers attach high value to products of high quality are willing to pay higher prices for such products.

For example,the product price that reflect the worth the customers are happy to pay for is a Rolex watch. Clients follow through on significant expenses for a Rolex watch since they append high an incentive to the Rolex watch because of its perceived prestige and quality features.

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