Price: Understanding and Capturing Customer Value

price. The customer's perception of the 

product's value places an upper bound on 

price. If customers feel that a product's 

price is higher than its value, they will not 

buy the product. The price of the product 

determines the price. When a company 

prices a product below its cost, the 

company's profits suffer. In setting its price 

between these two extremes, a company 

must consider a number of internal and 

external factors, including competitors'