IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-13402-1_6.html
   My bibliography  Save this book chapter

Prices and Costs

In: How to Market Computers and Information Technology

Author

Listed:
  • Hamish E. Macarthur
  • Merlin Stone

Abstract

Price is a key determinant of marketing and business success. Cutting price without a corresponding fall in unit (costs for instance, via higher volume) reduces profit margin. Competitors may react, or even over-react; this is common in unstable situations. A price raised without a corresponding extra incentive to the customer can cause reduced sales, accumulated inventory and slower asset turn. Despite this, many companies under-research pricing, and fail to give pricing decisions enough priority. Sometimes, pricing is not the responsibility of marketing, and is handled by finance or accounting functions on cost based principles. At the other extreme, pricing can be too close to what the market wants, without any attempt to sell at a premium, irrespective of the cost of supplying the product. Pricing is part of the marketing mix and substitutable for and by other elements of that mix, such as how the product package is put together and promoted, and how the supplier’s image is projected.

Suggested Citation

  • Hamish E. Macarthur & Merlin Stone, 1994. "Prices and Costs," Palgrave Macmillan Books, in: How to Market Computers and Information Technology, edition 0, chapter 0, pages 96-108, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-13402-1_6
    DOI: 10.1007/978-1-349-13402-1_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-13402-1_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.