Pricing Basics – Debate

It is said that pricing is the most flexible of all the elements of the marketing mix. In other words, marketers find price to be amenable to change on the “fly” so to speak. With the power of the internet and consumption shifts from the physical “brick and mortar” to “clicks only” or “clicks and bricks today, the pricing dynamic has changed forever.  In other words, the expression “consumer is king” is no longer a clich. A few examples —  Ebay, Stubhub.com, Zappos.com, Amazon.com have shifted the pricing dynamic in favor of the consumer.  Reflect upon what this means for how consumers shop and the impact on firms.

Debate: Take a position.

Should prices reflect the value that consumers are willing to pay OR should prices primarily reflect the cost involved in making a product or service?

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