At any cost?

Pricing decisions are affected by various factors, such as: costs, competition, buyers’ perception, organizational and marketing objectives etc. The first base of any pricing is the cost involved in the manufacturing of that good or product. Then, the other essential company operating factors influence the pricing decision of the company. In case of my laptop, the primary factor of pricing is the cost covered in finalizing the product including all the materials and components involved till the final consumer packaging. Then, it is followed by the other marketing mix variables also, where marketing and research and development also covers cost for the product manufacturing. Such processes also cover costs and hence included in different ways in the final consumer price. In the other hand, competition in the market place doesn’t always allow to price the product as the company desires, because the competition hits the final consumer in terms of price. So, the final price requires setting carefully observing various competitive and manufacturing cost factors.