Pricing Policy

Abstract

Price, which is often a determining factor for customers choosing among different products or services, is a key variable in the marketing mix. When establishing a sales price external constraints (regulations, market price, customer behavior) as well as the constraints associated with in-house strategic objectives (costs, profitability, policy, etc.) need to be considered. While there are different methods for determining the price, the final decision depends on the strategy of the company. Depending on the market response, prices often have to be adjusted. This is in part the case of airlines when they use yield management.