The Pricing Puzzle, Essay Example

I think the article is very relevant in as far as pricing is concerned. Pricing affects the choices consumers make on whether to purchase or not to purchase a product. Through price differentiation and determination, an organization would be in a position to increase or inhibit the increase in sale of its products.

It seems that the service sector, and particularly the hotel and the restaurant industry, are very sensitive to pricing. In the article, the author has pointed out pricing as part of the competitive response taken by the organization. This implies that, a slight increase in prices of services offered by an organization would be felt more as compared to the manufacturing sector.

Thoughtfully, pricing is the most important element in marketing. Consumers prefer getting quality products but at the cheapest price possible, although they also consider other elements. This would mean that they are always sensitive to the price of a product. Even for goods of ostentation, pricing remains an important element. For ostentation and abnormal goods, the higher the price, the higher the demand of the same. Notably, the businessperson has to be sensitive to the market.

From this article, I feel that businesspersons have to understand their market niche for them to develop or come up with process, which are contingent to the situations. By understanding the markets, decisions made on pricing remain always in line with the forces of demand and supply and the behaviors of consumers.

In conclusion, pricing will always remain to be a puzzle for many businesspersons. With very many factors to consider, the pricing of a product may determine the success or the downfall of the product or service.