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Essay text:
The firm’s objectives, markets, costs, competition and customer demand patterns must be integrated in every price setting decision.
The role of price for organizational buyers
A price is considered as a function of costs and benefits. The entire product a buying center buys is much more than a physical item. They are buying a given level of product quality, technical service and delivery reliability. There are other influences may be of importance for the buying decisions like the reputation of the supplier, a feeling of security and personal relationships.
It could be summarized into 3 categories:
• Product specified attributes
• Company related attributes
• Salesperson related attributes
Pricing decisions and product policy decisions are inseparable...
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