What process involves deciding the pricing strategy for goods and services?

The process of deciding the pricing strategy for goods and services is known as pricing. This process encompasses a variety of considerations including market demand, competition, cost of production, perceived value, and the overall business strategy. Pricing is critical because it directly impacts a company’s revenue and profitability.

A well-structured pricing strategy allows a business to position its products effectively in the market, attract the right customers, and respond quickly to changes in market conditions. It also considers psychological factors that influence how customers perceive value and make purchasing decisions.

In contrast, product management focuses on the overall strategy and lifecycle of a product rather than specifically setting prices. Costing relates more to determining the costs involved in the production of goods, while market analysis entails assessing market conditions and consumer behavior but does not specifically address pricing. Thus, pricing stands out as the most directly relevant process for determining the prices of goods and services.