The effects of pricing on brand equity

One of the four P’s of marketing which brings revenue into the organization is price. Price is the exchange value of a good or service. An item is worth only what someone else is willing to pay for it. In a primitive society, the exchange value may be determined by trading a good for some other commodity. More advanced societies use money for exchange. But in either case, the price of a good or service is its exchange value.Brand equity is real equity, the balance-sheet value of that identity. Its strength is built on its ability to remain unaffected by temporary fluctuations in any of the comprising factors. This books shows,brand dimensions and Consumers have a collective image of a brand, created by the deployment of its brand assets: name, tradition, packaging, advertising, promotion posture, pricing, trade acceptance, sales force discipline, customer satisfaction, repurchase patterns, etc.The most powerful value contribution of a strong brand is the ability to demand and defend higher prices than competitors.The challenge for marketers is finding the right price point to achieve maximum sales without damaging consumers’ perceptions of the brand’s overall value.