Friday, December 2, 2016

Marketing Mix: Price


Keeping a price in mind that customers will not only see value but also quality in and since I am not a person that typically buys this type of item I am outside of my comfort zone. One thing I do understand though, as a guy, is quality over quantity. As the book states "Price is a component of value (a $4,000 handbag is perceived as being more luxurious and of higher quality than one selling for $100), but low price is not the same as good value. Instead, customers value goods and services that are of the quality they expect and that are sold at prices they are willing to pay." (Lamb 7)

Because "Lower-income consumers are price sensitive, but they will pay for products if they deliver a benefit that is worth the money"(Lamb 7) I plan on keeping the cost fairly low. The cost of face cream ranges from $30.00 up to $300.00, so I was planning on keeping the cost to around $40.00  
I am hoping that at this price it will develop a loyal base and after selling 100, 000 units we can re-evaluate how quickly the product sold and get customer feedback on the effectiveness of the face cream.



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