PRICING POLICIES

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Chapter One

Pricing Policy

1.0             Pricing Theory:

Pricing is an important and complex element of the marketing mix and generates the highest level of external interference because of its place as a major determinant of the volume of goods and services available for the consumers in any economy.

1.1     Concepts of Price:

A lot of definitions have been given to price by various authors depending on their disciplines.

To the layman in the street, price is the money value of a produce or service agreed upon in a market transaction. This means putting a value (both tangible and intangible) on something in naira and kobo and then finding a seller who agrees with that evaluation.

Price is also regarded by some as what is left over after expenses have been deducted from revenue or income.

According to Adirika (1996) price is a monetary expression of value. Value is created in utility, utility is an expression of usefulness, while usefulness is based on the potential for need and want satisfaction.

Odike (2001) observed that price is an important variable in any type of economy and for all types of economic activities. It is understood to mean what must be given in exchange for what one gets. Price is functional wherever exchange takes place.

According to Anyanwu (2000) pricing is a specialist assignment goods and services in any modern economy. Price have the ability to determine both the standard of living of the citizens and the level of economic development of any nation.

Pricing is the process of determining the price, price being the amount of money for which a thing is offend, sold or bought.

Price can also be define as the money value of a product which emerges in a market transaction.

Busch and Honston (1985) defines price as the value assigned to the utility one receives from goods or services.

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