Pricing is usually depends on the firm’s average costs, and on the customer’s perceived value of the product in comparison to his or her perceived value of the competing products. It is also a key variable in microeconomic price allocation theory. It is the method a company uses to set the price its product. Pricing structure must take into account not only the cost to produce the product which includes materials, time, labor, overhead. Pricing is the most important concept in the field of marketing, it is used as a tactical decision in response to comparing market situation.
Article on Pricing
