CHAPTERONE
INTRODUCTION
1.1 Backgroundof the study
Perfume product is very important to the health of thehuman being. It is used for preserving the odor. This product has to beappropriately pricing in order to attract customer patronage and increase profitability.According to (Kotler, 1996: 46) price is the amount of money customers pay forthe product or service and the time a place of change.(Mmamel, 1994: 10) in thequality renew of marketing stated that price is the exchange value ofgoods/services and the value of an item is what it can be exchange in themarket place, every product and service has its price. It is through price andpayment that firms recover their cost of production and active their margin ofprofit.Pricing is the monetary expression of value is created on utility,utility is an expression of usefulness while usefulness is based on thepotential for need and want satisfaction value and utility are culturally basedwhile needs and want-cultural, psychological, sociological and physiologicalbased, therefore price as an ultimate expression of needs and want satisfyingpotential of an items of product or services which has cultural psychologicaleconomic implication on market. (EdogaAni, 2000: 319) noted that price asperceived quality increase, value increase. Also for a given price, valuedecrease when perceived quality decrease. For some product price itselfinfluences the perception of quality and ultimately value to consumers. Thisincludes toilet soaps.Pricing is an important and compete element of themarketing mix and generate the highest level of external interference. It is amajor determine with volume of goods and services available for the consumer inany economy. Therefore, forms especially those on profit business has to choosewith the contain of the environmental variables both external and internalpricing policies and techniques which are available to achieve itsorganizational objectives. The importance of price in the marketing of Mary-Kayperfume cannot be over emphasized. If an organization wants to maximize its netprofit, the right price must me selected for its products price in goods mayeither be too high or too low to be good. When the price and changed are twohigh the size of the market for that particular product may be unnecessarilyrestricted and if the right price where used. The size of net profit isdirectly related to the effectiveness of price because price usually causeschange in market demand for a given product and in turn it revenue and netprofit.(Monroe 1994: 210) Noted that the consumer perception of product qualityvery directly with the price, the higher the price the better the quality ispreferred to be. In the words of (Adirika, Ebue&Nnolim 1993: 25) withoutprice there can be no marketing, product may be marched with market but onlywhen buyers or sellers agree on price, buyer or a seller may propose a pricebut it is not effective unit price is accepted by the owner. In the view of thecomplex nature of price and important to customers patronage decision the researcherin the study critically examine the effect of piecing on consumer patronage ofMary-Kay perfume in Enugu metropolis
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