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A pricing strategy refers to the method or model used by a business to establish prices for its products or services. Considering the centrality of profitability to businesses, an effective pricing strategy is key, necessitating an understanding of what pricing strategy truly means and implies.
A pricing strategy, when comprehensively defined, is a model or method used by a company to determine the most suitable price for its product or service. It is an important component of a company's overall business strategy and a key determinant of its market position. A well-planned pricing strategy takes various elements into account, including production and distribution costs, competition, target audience, market conditions, and product quality (Kotler & Armstrong, 2018).
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