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NO THE MARKET DICTATES THE PRICE ! Pricing is done based on the Market Situation, on The Market share of the product and the Marketing Objectives.
Who dictate the price ? :
The Market situation : Competitive / Higly competitive ? Saturated Market ? Monopoly Market ? Developing Market ? etc etc
Another important element in price is The Market share of the product.
And the Marketing Objectives: Branding ? Up Market Branding? Positioning? Drop in Sales? Market \\Share Growth? etc etc
I thnk prices are dictated by companies and competitor and customer is the victim of that price war.
There runs a two faced system for price mechanisim in sales :
a) Branded items : Company monopoly over prices, might they reduce the logistic & opreations costs
b) Competitor : Has always eagle eye to the stall near by, so no, large difference is seen.
well i beleave that the answer of mr Fazal Ebrahim Dawood is correct
i think it is the company which dictates the price of product after keeping a close eye on all the factors.
Price is derived by the interaction of supply and demand. The resultant market price is dependant upon both of these fundamental components of a market.
Therefore the market dectates the price.
i think the competitor
Many factors included:
1- Market condition
2- Segement type of customers.
3- Competitors
4- Market Strategy of the company.
The price should be dictated by the company who is selling, the price should be fixed keeping in mind the quality of the product compared to other comptitors providing the similar product or service
In a healthy economy, I believe the competitor dictates the pricing if there is a balanced competitive environment (in opposed to a more monopolized market) ; In this case, the customer dictates the pricing as well as all the companies are contesting to please the most consumers. Also, in a healthy economic and political environment, prices are often directed (controlled and limited) by government and by consumer protection rights for the good of society.
I think competitors and customers dictates the price. how well do customers patronize the market and the price of other competitors.
