Topic > Examples of market segmentation - 2799

The price of a product is an important factor in determining its success and value in the eyes of the consumer. Since the company that is developing the food product is relatively new, it is important not to make the price too high, as consumers will not be interested in purchasing a new product from a relatively new company whose prices are higher than those of competitors. The price must cover production costs but also be adequate in the eyes of the consumer. Consumers would expect the price to be set similarly to the competition or slightly cheaper. However, the possibility of setting the price too low should be considered, as consumers may then perceive the product as inferior or of lower quality than other food products on the market. Although, since the product does not have many competitors, since there are few similar products, the company could increase the price slightly without influencing the opinion of the target market, since it is a product that they have not seen