Prices Are Often Set To Satisfy Demand Or To Reflect The Premium That Consumers Are Willing To Pay For A Product

Question

Prices are often set to satisfy demand or to reflect the premium that consumers are willing to pay for a product

or service. Some critics shudder, however, at the thought of $2 bottles of water, $150 running shoes, and $500 concert tickets.

Prices should reflect the value consumers are willing to pay versus prices should reflect only the cost of making a product or delivering a service.

Marketing