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1). Ultimately, prices must reflect customers' willingness to pay but the key is for companies to understand the value of an item to the consumer as "pricing strategically involves managing customers' expectations to induce them to pay for the value they receive?If managers think about pricing only when they must set a price, then pricing becomes a tactical exercise of matching price to customers' willingness to pay" (Nagle, 2002, p...
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2). Managers can manipulate the willingness to pay via the pricing process, price structure, or the value message communicated to the consumer. All can have an effect on establishing a value-based price system where consumers see acceptable prices and companies realize maximum profitability.
Wal-Mart's disregard for the true value of certain toy items and their deep under-cutting of prices as compared to the competition could be considered successful in many ways...
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